Thai Olefins to raise funds for second ethylene oxide-ethylene terephthalate plant

25 May '05

2 min read

thailand's major producer of olefins, ethylene, propylene and petrochemical by-products, thai olefins pcl announce that is in quest to raise usd 200mn to usd 300mn in denominated bonds with the help of citibank inc. and deutsche bank ag.

at ptt pcl, the oil and gas company that owns 44.9% of thai olefins, a senior official explained that the bond would likely to carry a 7-10 years maturity and would be available in the market from june.

the official informed that there are two motives after issuing the bond. the first is to make finance available for new investment and the second is to pay back an existing loan.

the company plans to set up a second ethylene oxide-ethylene terephthalate, or eoet plant in the next year, expecting to complete it by the end of year 2008.

the plant would be functioning similar as first plant anticipated to be completed in 2006.

the company intends to accelerate production of ethylene, and in the beginning of the year said it plans to invest $75mn to increase production by 100,000 metric tons per year.

this offer will be thai olefin's first international bond, and the company is presently looking for credit ratings before launching the plan.

the thai olefins public company limited was established in january 1990 , under the name thai olefins co ltd, a joint venture between ptt public company limited (ptt), which is its major shareholder, and seven other leading petrochemical companpanies in thailand.

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