Allen & Overy and White & Case won a landmark mandate – acting on the first non-Thai denominated debt issue offered in Thailand since new regulations set in earlier this year. The deal’s significance was bolstered by also being the largest corporate bonds issue in Thailand since the 1997 Asian financial crisis.

Allen & Overy advised PTT Exploration and Production Public Company (PTTEP) on its issue in Thailand. The US-denominated bonds were issued through the Thai state-owned oil and gas producer’s wholly-owned subsidiary in Australia, PTTEP Australia International Finance.

In addition to the Thai tranche of US-dollar bonds totalling US$200m, PTTEP also raised US$500m through offering an international tranche of American bonds under section 144A. Both tranches have a five year maturity and are fully guaranteed by PPTEP. PTTEP mandated Bangkok Bank, Kasikornbank and Krung Thai Bank as managers for the Thai tranche.

“The Thai tranche represented the first non-Thai denominated debt issuance offered in Thailand since the Thai SEC regulations permitting such transactions were introduced in June 2010,” A&O Thai partner Suparek Auychai said. “This involved assisting the Thai SEC and the Bank of Thailand in drafting the Thai SEC regulations and in ensuring the appropriate mechanics for issuing foreign currency bonds in Thailand.”

White & Case and Weerawong Chinnavat & Peangpanor represented the underwriters in accordance to US law and Thai law, respectively.ALB

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