Thailand Securities and Exchange Commission urges CHAYO bondholders to review proposed two-year maturity extensions and coupon increases ahead of 29 July vote

The Thailand Securities and Exchange Commission (SEC) urged bondholders in five CHAYO bond series to study all available information and exercise their rights at Chayo Group Public Company Limited’s electronic bondholders’ meeting on 29 July 2025, where changes to key bond terms will be put to a vote. The agenda includes extending maturities for CHAYO25NA, CHAYO263A, CHAYO260A, CHAYO273A and CHAYO279A by two years and splitting principal repayment into two instalments, with at least 10 percent of the outstanding amount paid on the original maturity date and the remainder on the extended maturity date. Subject to approval of the maturity extension, CHAYO will propose increasing the coupon by 0.125 percent per year over the extended period (to 6.125 percent, 6.175 percent, 6.375 percent and 6.525 percent depending on the series), and adding a requirement to allocate at least 50 percent of net proceeds from the sale of land on Koh Yao Yai (after relevant expenses) to repay the extended bonds. Other proposed changes include exempting certain actions from triggering an event of default when the issuer seeks to revise repayment conditions or negotiate restructuring with other creditors, removing the obligation to report credit rating review results (and to conduct credit rating reviews as specified in the terms), and allowing early repayment without prepayment fees. The SEC also required the bondholders’ representative to analyse the benefits, shortcomings and potential impacts for bondholders under both approval and non-approval scenarios, with supporting reasons and the representative’s opinion, and encouraged bondholders to seek comprehensive information from the issuer and the representative before voting.