Minor International announced plans to raise THB25bn ($780m) to strengthen its balance sheet.
The company said that its second-quarter results would be further affected by the closure of hotels and restaurants.
Minor on said it would raise THB10bn via an issuance of perpetual bonds and THB10bn via a rights offer in the third quarter. Following the rights offer, the company plans to raise the final THB5 billion via three-year warrants.
Dilip Rajakarier, group CEO, said: “I am very confident that this comprehensive capital-raising exercise will strengthen Mint’s ability to continue to grow sustainably. We expect full support on this transaction from our major shareholders, reflecting their belief in the future of Mint. The solid balance sheet will be the foundation for Mint to further build on its first-class quality assets that have been accumulated over the years, in order to generate returns in the long term.
“Our interest-bearing debt to equity ratio is expected to come down to 1.3x by the end of this year, significantly below the debt covenant of 1.75x.”
The announcement came after the group reported a first-quarter loss of THB1.77bn, versus a profit of THB583.1m a year earlier.