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PTT Global Chemical Public Company LimitedRegistration No. 010755400026 7
Head Office : 555/1 Energy Complex, Building A,
Rayong Office : 59, Ratniyom Road, Noenphra,
!?!!RL CHEMICRL
14th-18th Floor, Vibhavadi Rangsit Road,
Mueang Rayong, Rayong 21150 Thailand.
Chatuchak, Chatuchak, Bangkok 10900 Thailand.
Tel: +66(0)2265 -8400 Fax: +66(0)2265 -8500
Tel: +66(0)3899-4000
Fax: +66(0)3899-4111
(Translation)
Ref. No.t6 - s,r /2016 December 20, 2016
Subject: Signing of the Renewal Inter-Company Borrowing & Lending Agreement between PTTGC and PTT To: President. The Stock Exchange of Thailand
Reference: PTTGC's letter No. 16-048/2015 dated on December 21, 2015 on the signing of the Inter-Company Borrowing & Lending Agreement between PTTGC and PTT
Reference is made to the letter from PTT Global Chemical Public Company Limited ("PTTGC") to the Stock Exchange of Thailand notifying the signing of the Inter-Company Borrowing & Lending Agreement ("ICBL") between PTTGC and PTT Public Company Limited ("PTT") dated on December 21, 2015 .
The Board of Directors of PTTGC in its meeting No. 10/2012 dated October 26, 2012 has approved to proceed the short-term liquidity management between PTTGC and PTT, a major shareholder of PTTGC which holds 48.89 %, and authorized Chief Executive Officer ("CEO") or those delegated by CEO to have the authority to negotiate on the transaction and define the details of the ICBL between PTTGC and PTT by preparing the loan agreement and I or any other related contracts. including the renewalof the loan agreement for a further term of not more than 1 year.
In this regard, PTTGC is pleased to inform that the loan agreement as disclosure to the Stock Exchange of Thailand in the letter No. 16-048/2015 has expired on December 19, 2016 and currently PTTGC has renewed the ICBL between PTTGC and PTT for 1 year.where the details of the transac tion is in accordance with the original agreement and detailed as follow.
Description
Transaction Date | December 20, 2016 | |
The related contractual parties and their relationship | PTT Public Company Limited Major Shareholder of PTTGC. which holds 48.89% | |
Objective | To increase efficiency of PTTGC's short-term liquidity management | |
Transaction | To receive financial assistance | To provide financial assistance |
Short-term borrowing | Short-term lending | |
The Characteristic | Uncommitted Unsecured Short-term Loan | Uncommitted Unsecured Short-term Loan |
Currency | Thai Baht or US Dollar. as it is agreed | Thai Baht or US Dollar, as it is agreed |
Contract Period | 1 year (Dec. 20, 2016 - Dec. 19, 2017) | 1 year (Dec. 20, 2016 - Dec. 19, 2017) |
The total value of transaction and the criteria of evaluation of transaction | Calculated from the annual interest expense | Calculated from principle and annual interest income. |
Loan size not exceeding Baht 5,ooo million | Loan size not exceeding Baht 2,000 million | |
Total value of the transactions (Both borrowing and lending) is less than 3% of PTTGC's Net Tangible Assets as at September 30, 2016 | ||
Interest Rate | Normal interest rate is based on market rate. With the interest rate on short term loans: BIBOR (Bangkok Interbank Offered Rate) or LIBOR (London Interbank Offered Rate) plus Interest Rate Spread by taking into account on the return on investment, short-te rm interest rate and credit rating of PTTGC, which is equivalent to or lower than the interest rate on loans from financial institutions | Normal interest rate is based on market rate. With the interest rate on short term loans: BIBOR (Bangkok Interbank Offered Rate) or LIBOR (London Interbank Offered Rate) plus Interest Rate Spread by taking into account on the return on investment , short-term interest rate and credit rating of the borrowing company, which is equivalent to or better than PTTGC's cost of capital |
Source of Fund | n/a | Working Capital |
Termination of the Contract | With notice of not less than 5 working days |
The transaction is a connected transaction under the disclosure of information concerning the connected transaction on giving or receiving financial assistance with the transaction size less than 3% of PTTGC's net tangible assets as of September 30, 2016.
Please be informed accordingly. Sincerely yours,
Miss Ouangkamol Settanung
Executive Vice President - Finance and Accounting
Corporate Finance and Investor Relations
Tel. +66 (0)2265 8421 , +66(0)2265 8574, +66 (0)2265 8172
PTT Global Chemical pcl published this content on 20 December 2016 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 12 January 2017 16:25:07 UTC.
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