Summary · why it matters
North East Rubber Public Company Limited, or NER, has filed a draft registration statement with the Securities and Exchange Commission to issue and offer unsubordinated, unsecured bonds with a call option, with a maturity of 3 years 9 months, due in 2033, carrying interest of 4.70% per annum, with interest paid every 3 months. The bonds will be offered to institutional investors and high-net-worth investors between 29-30 September 2026 and 1 October 2026 through the underwriters, namely Asia Plus Securities, KGI Securities (Thailand), Dao Securities (Thailand), Krungthai XSpring Securities, and Bluebell Securities, with Asia Plus Securities Company Limited acting as the bondholders' representative. The company intends to use the proceeds to purchase assets, invest, or as expenses in activities related to its current business operations. Meanwhile, Tris Rating has assigned a credit rating of BBB- to NER's new bond issue with a value of not more than 1.8 billion baht and a maturity of not more than 4 years. The rating of the new bond issue will replace the rating of the bond issue with a value of not more than 1 billion baht maturing within 4 years that Tris Rating announced on 20 August 2026 at the company's request, and the company's corporate rating and the rating of its current unsubordinated, unsecured bonds remain at BBB- with a Stable outlook. Tris also maintains the rating of the company's bonds guaranteed by the Credit Guarantee and Investment Facility (CGIF) at AAA, reflecting CGIF's rating of AAA/Stable as the guarantor of the company's bonds. The company reported total operating revenue of 14.4 billion baht in the first 6 months of 2026, down 11.9% compared with the same period last year, while EBITDA stood at 1.1 billion baht, resulting in an EBITDA margin of 7.4%. Operating results were slightly below Tris Rating's forecast due to high raw material costs, with prices rising approximately 30%-40% since the start of 2026 and expected to remain high throughout the year. Tris Rating expects profitability to improve in the second half of 2026 as selling prices better reflect higher raw material costs. As for financial debt in the first 6 months of 2026, it was higher than expected, with the financial debt to EBITDA ratio rising to 5.1 times, but it is expected to improve in the second half of 2026 and fall below 5.0 times. In addition, the company has postponed its plan to invest in a new plant worth 2 billion baht, originally scheduled for 2026, to wait for clarity on trade tax measures related to geopolitical conflicts, as well as the potential impact of El Niño on natural rubber supply in the market. As of June 2026, the company had total financial debt, excluding lease liabilities, of approximately 10.9 billion baht, of which approximately 4.7 billion baht was senior debt, accounting for 43% of total debt, and its net debt to equity ratio stood at 1.1 times, below the financial covenant requiring the ratio to remain below 2.5 times.
Asia Plus Group Holdings PCL
KGI Securities (Thailand) Public Company Limited
North East Rubbers Public Company Limited