Bangkok Bank (BBL) has pledged to extend the repayment date and reduce the interest rate on a loan worth 13.3 billion baht which Jasmine Broadband Internet Infrastructure Fund (JASIF) still owes, if the fund's unitholders approve Advanced Info Service (AIS)'s purchase of the fund's units held by Jasmine International (JAS).
The move was communicated to the Stock Exchange of Thailand by BBL Asset Management (BBLAM), JASIF's fund manager.
The move is seen as a positive note for AIS's push to purchase a 19% stake in JASIF as the fund's unitholders are scheduled to hold a meeting to consider the deal on Oct 18.
Regarding the present loan agreement with BBL, JASIF has to repay loan capital of 1.15 billion baht in 2023, 1.3 billion in 2024, 1.45 billion in 2025, 1.55 billion in 2026, 1.7 billion in 2027, 1.9 billion in 2028, 2.1 billion in 2029 and 2.2 billion in 2030. The minimum loan rate (MLR) has been set from 2023 to 2030.
Under the new term offered by BBL, JASIF will repay 50 million baht in 2023, 200 million in 2024, 250 million in 2025, 600 million in 2026, 750 million in 2027, 2 billion in 2028, 2.2 billion in 2029, 2.2 billion in 2030, 2.4 billion in 2031 and 2.7 billion in 2032. The new term involves MLR-0.5% from 2023 to 2032.
In July, AIS announced its plan to buy fixed broadband provider Triple T Broadband (TTTBB) and invest 19% in JASIF in a deal worth 32.4 billion baht in total.
JAS, which wholly owns TTTBB, is the biggest unitholder of JASIF with a 19% stake.
JASIF owns fibre-optic cable spanning 1.6 million core kilometres, currently leased by TTTBB for its broadband internet service under the brand 3BB.
The deal will be undertaken by Advanced Wireless Network (AWN), a subsidiary of AIS.
Pornchalit Ploykrachang, deputy managing director of BBLAM, said BBL's latest offer came after the fund requested BBL to extend the maturity date and reduce the interest of the loan agreement if there were to be a change of sponsor from JAS to AWN, whose strong financial stability reduces the business risk of the fund.
On Sept 14, BBL told BBLAM that, in principle, it approved the extension of the repayment date and the reduction in the interest rate, he said.
BBL said the new offer will happen if JASIF's unitholders approve AWN's purchase of investment units held by JAS and agree with amendments to the relevant agreements by the parties involved, said Mr Pornchalit. In addition, the purchase of TTTBB by AWN must also be completed.
According to an analysis by Maybank Securities, the longer debt repayment schedule would allow JASIF to cut annual repayments by 1-1.2 billion baht from 2023 to 2027.
JASIF's yield is expected to increase from 8.6% to 10.4% in 2023, the brokerage firm said.
On Monday, AIS said it will assist TTTBB in procuring a source of funds for an advance payment of 3 billion baht in optical fibre cable (OFCs) rental fees to JASIF.
But this will happen if JASIF's unitholders resolve to approve the sale of JASIF units held by JAS to AIS and the amendment to the relevant lease agreements between TTTBB and JASIF.
