Credit Guarantee and Investment Facility (CGIF), a trust fund of the Asian Development Bank, has guaranteed a three-tranche bond issuance amounting to 1.95 billion baht (US$55.24 million) from Vongsayam Korsang Company (VSK) of Thailand. The transaction has achieved two significant breakthroughs. First, the 10-year tranche is the longest Thai baht bond to be guaranteed by CGIF to-date, and second, it is the first CGIF-guaranteed offering placed entirely to high-net-worth individuals (HNWIs) only.

Established in 1976, VSK initially focused on building contracting. In 1982, the company expanded into water utilities and pipeline system management. Over the years, VSK has developed expertise in constructing water pumping and treatment systems, pipeline maintenance and installation. In 2022, it was awarded a 30-year operations and management concession for the Eastern Economic Corridor main water management project of the Treasury Department under the Ministry of Finance.

The proceeds from the bond issuance, announced on August 8, will be used for VSK’s investment and construction of the main raw water pipeline system in the eastern region of Thailand.

DAOL Securities (Thailand) was the lead arranger for the transaction, while Twin Pine Group Company served as the deal adviser. Acting as arrangers were Asia Plus Securities, Bluebell Securities, Beyond Securities, Finansia Syrus Securities, Globlex Securities, Krungthai XSpring Securities, Maybank Securities (Thailand), Merchant Partners Securities, Phillip Securities Thailand and UOB Kay Hian Securities (Thailand).

Commenting on the transaction, CGIF chief executive officer Hongwei Wang says the bond placement solely for HNWIs demonstrates the trust fund’s ability to assist issuers in tapping the demand from specific investor groups, which recognize CGIF’s value proposition as an AAA-rated bond guarantor in Thailand. “The transaction also underscores CGIF’s continuing commitment to foster long-term investment in infrastructure development, through access to long-term funding,” he adds.

VSK managing director Anurit Kerdsinchai notes the CGIF guarantee is a validation for VSK’s robust credit and commitment to environmentally and socially conscious development. “The strong demand from a diverse pool of high-net-worth investors for our guaranteed debentures is a testament of confidence in CGIF and trust in VSK’s sustainable future,” he says.