Gulf Energy Development Seeks Allen & Overy's Counsel for its MTN programme and THB35 billion in Bond Issues

Gulf Energy Development Seeks Allen & Overy's Counsel for its MTN programme and THB35 billion in Bond Issues

The largest private power producer in Thailand by market value, Gulf Energy Development Public Company Limited (GULF), has received advice from Allen & Overy on the creation of its medium-term note (MTN) programme and domestic sales of plain vanilla bonds and digital notes under the programme totalling THB35 billion (USD915m).

Investors had the option of subscribing to the bonds through either the 'Pao Tang' mobile application developed by Krungthai Bank Public Company Limited (Krungthai) or through nine Thai financial institutions. Both the options were available for each tranche of bonds offered to the public.

When it comes to electronic financial platforms and digital wallets, Krungthai's 'Pao Tang' smartphone application has more than 34 million active users and is by far the largest in Thailand. Since it is an "open digital platform," the "Pao Tang" mobile app is available to any resident of Thailand, including individuals who do not have a bank account with Krungthai.

To make investments in highly rated corporate bonds available to everyone in Thailand, the sale of GULF's bonds in this manner is considered as a crucial first step. There will be a net positive effect on efficiency and the digitalization of the Thai debt and equities capital markets from the issue of digital bonds using the 'Pao Tang' mobile application. It is important to note that GULF's digital bonds do not require a scrip to purchase, which is a significant factor in encouraging more issuers in Thailand to tap into the bond market.

Bangkok-based counsel Doungporn Prasertsomsuk led the A&O team, which included Bangkok-based colleagues Pichaya Ruamsub and Pradchayada Maneeratanapron, as well as Hong Kong-based partner John Lee.

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