Allen & Overy has advised Bank of America Merrill Lynch, Credit Suisse, HSBC and J.P. Morgan, as joint bookrunners, on PTT Exploration and Production Public Company Limited’s corporate hybrid bond issuance, in what is reported to be the first USD hybrid issuance by a Thai corporate since 2006. The USD1 billion subordinated perpetual capital securities were offered in a combined Rule 144A/Regulation S transaction to institutional investors internationally. PTTEP is Thailand’s largest publically listed oil and natural gas explorer.

PTTEP is Thailand’s largest exploration and production company of oil and natural gas and is the third largest publicly-listed company on the Stock Exchange of Thailand. PTTEP operates more than 40 projects around the world.

Commenting on the deal, US capital markets partner Alex Stathopoulos said: “We were delighted to advise on this significant transaction which despite the uncertain political situation, received substantial support from investors in Asia, the US and Europe and further demonstrates the strength of our hybrid securities credentials in particular.”

Bangkok corporate and capital markets partner Suparerk Auychai said “This is one of several transactions we have worked on for the PTT Group of companies, and it is a great example of where our US law team and Thai local law team can combine skills and experience to deliver a successful outcome for clients”.

Hong Kong-based capital markets partner Alex Stathopoulos led on the US law aspects of the transaction. John Lee, a capital markets partner also based in Hong Kong, led the structuring of the terms of the hybrid securities. John and Alex were assisted by Hong Kong associates Garrick Merlo, Wen Gao and Grace Ily Yumul. Partner Suparerk Auychai led the Bangkok team on the Thai law aspects of the transaction, with support from counsel Noporat Kaewsringarm and associates Peerajit Chanmolee and Wipawat Yingsakmongkol.

The PTT group of companies are long-standing clients of the firm and we have previously advised on a number of issuances, including Rule 144A/Regulation S senior bond offerings by PTTEP and Thai Oil in 2013, and by PTT and PTTEP Canada International Limited in 2012.