Thai Khon Kaen Sugar Scales Back Bond Issue

Bangkok, Oct 10 - Thai sugar miller Khon Kaen Sugar Industry said on Friday it had scaled back a planned bond issue in November, the latest Thai firm to adjust financing plans during the global credit crunch.

Khon Kaen executive Chalush Chinthammit said the 1.5 billion baht ($43.6 million) debt issue, down from a previous 2.0 billion baht, was sufficient to meet the company's funding needs.

"We have not delayed our bond sales," he told Reuters in an interview. "The size is small and I feel it should get a good response from investors."

Khon Kaen, the country's fourth-largest miller, follows other Thai firms that have delayed or scaled back bond issues, including Preuksa Real Estate and hotel-and-food firm Minor International

But the worldwide credit crisis has not deterred others.

Majority state-owned energy giant PTT is pushing ahead with the domestic sale of a AAA-rated bond worth 10 billion baht next week.

Chalush said a weaker sugar price and costs related to new plants in neighbouring Cambodia and Laos would slow net profit growth this year, but he did not give a specific forecast.

In January, he predicted a 20 percent rise in net profit from a year before.

Chalush expected better results next year with contributions from the new plants and higher sugar prices on the back of tighter world supply.

Five analysts polled by Reuters Estimates expected the company to report an average 2007/2008 net profit of 965 million baht, up 15.6 percent from last year. They forecast net profit rising to 1.16 billion baht next year.

On Friday, Khon Kaen shares fell 10.77 percent to 5.80 baht while the main Thai stock index dropped 9.61 percent. ($1=34.37 Baht)
source:flexnews