AIS closes US$1,000 billion bond deal to strengthen its digital business.

AIS closed a $1 billion dollar-denominated bond deal after being oversubscribed by five times, reflecting strong confidence from foreign investors. The funds will be used to invest in digital infrastructure to support the future growth of the digital economy.

March 5, 2569 Advanced Info Service Public Company Limited, or AIS. Announcing the successful issuance and offering of US$1,000 billion in US dollar-denominated bonds (USD Bonds). With subscriptions exceeding US$5 billion, or more than five times the amount offered for sale.

With the lowest credit spread for US dollar-denominated bonds issued by companies from Thailand and Asian telecommunications companies (excluding Japan) with the same credit rating, and the lowest in 31 years for 10-year US dollar-denominated bonds of Asian telecommunications companies (excluding Japan) with the same credit rating.

This bond issuance demonstrates AIS's strong financial position and cash flow. It also strengthens its financial stability by expanding its investor base to international capital markets, opening opportunities for institutional investors in Europe and Asia to participate. This reflects investor confidence in AIS as a leading digital telecommunications company, leveraging its internationally recognized growth potential and financial strength.

The bonds are divided into two tranches: a 5-year bond with an interest rate of 4.26% and a 10-year bond with an interest rate of 4.894%. They are listed on the Singapore Stock Exchange for general purposes of the company.

The company will enter into a Cross Currency Swap agreement to convert all principal and interest payments on the bonds throughout their term into Thai Baht to hedge against exchange rate and future interest rate risks. This will also maintain interest rates at a level comparable to domestic borrowing sources, thereby keeping the company's average financing cost close to the current estimated 2.7% to 2.8%.

The bonds have been rated BBB+ by Standard & Poor's Rating Services (S&P), an investment-grade credit rating reflecting the company's strong financial position and ability to repay debt. Following the bond issuance, AIS is expected to maintain a net debt-to-EBITDA ratio of no more than 2.5 times, reflecting its robust financial position and effective debt repayment capabilities, while also supporting future growth opportunities.

Mr. Theer Sri-Ampornroj, Chief Financial Officer, AIS. They stated that this bond issuance is a significant step in managing the capital structure to align with investment plans and business direction, and to ensure stable long-term support for expanding investment in digital infrastructure.

“AIS, as a leading digital telecommunications company, has expanded from being a telecommunications network provider to offering Intelligent Digital Infrastructure, encompassing the expansion of 5G networks, home internet, and investments in new businesses such as data centers, cloud, and digital services. These initiatives aim to meet the needs of both B2C and B2B customers as they rapidly transition to a digital economy and society.”

"This offering of US dollar-denominated bonds, equivalent to 31,000 billion baht, has received strong interest from international investors, reflecting AIS's internationally recognized financial strength."

• Subscriptions exceeded 150 billion baht, which is more than five times the amount offered for sale.
• This is the largest issuance of US dollar-denominated bonds by a telecommunications company (excluding Japan) since 2563.
• The interest rate received represents the lowest credit spread for US dollar-denominated bonds issued by companies in Thailand and Asian telecommunications companies (excluding Japan) with the same credit rating.
• The interest rate offered represents the lowest credit spread in 31 years for 10-year US dollar-denominated bonds in Asian telecommunications companies (excluding Japan) with the same credit rating.

This is a result of AIS's strong financial position and cash flow generation capabilities. It also helps diversify funding sources into international markets, increases the diversity of its fixed income investor base, and enhances flexibility in cash flow management. The company also prioritizes prudent financial management to build a solid financial foundation, support future growth, and contribute to the sustainable development of the country's digital infrastructure.

AIS Announces Successful Issuance of USD 1 Billion Bond, Strengthening Financial Stability to Support Digital Business Growth

Advanced Info Service Public Company Limited (AIS) today announced the successful issuance of USD 1 billion in US dollar-denominated bonds, which attracted strong investor demand with total orderbook exceeding USD 5 billion, or more than 5x over subscription. The bonds were priced at the lowest credit spread ever achieved for USD bond issuances by a Thai corporate and by an Asian telecommunications company (ex-Japan) within the same credit rating. In addition, the 10-year tranche achieved the lowest credit spread in the past 31 years for USD bonds issued by Asian telecommunications companies (ex-Japan) within the same credit rating. These milestones highlight AIS's strong financial position and robust cash flow generation. The issuance further strengthens AIS's financial position by broadening its global debt investor base, with participation from institutional investors across Europe and Asia. The strong demand underscores investor confidence in AIS's growth prospects and financial strength at the international level.

The bonds are issued in two tranches: a 5-year tenor with an interest rate of 4.260% and a 10-year tenor with an interest rate of 4.894% The bonds will be listed on the Singapore Exchange (SGX) and the proceeds will be used for general corporate purposes. AIS will enter into Cross Currency Swap agreements to convert the principal and interest obligations of the bonds into Thai baht throughout the bonds duration. This transaction will help mitigate further foreign exchange and interest rate risks while maintaining interest costs in line with domestic funding sources. As a result, the Company expects to maintain its average cost of debt at approximately 2.7%–2.8%, similar to the current level.

The bonds have been rated a BBB+ credit rating by Standard & Poor's Rating Services (S&P), which is within the Investment Grade Rating, reflecting AIS's strong financial position and solid debt servicing capability. Following the bond issuance, AIS is expected to maintain its net debt-to-EBITDA ratio within the range of 2.5x, underscoring its continued financial strength and effective debt servicing capacity, while maintaining flexibility to support future growth opportunities.
Tee Seeumpornroj, Deputy Chief Executive Officer and Chief Financial Officer of AIS, stated: “This bond issuance marks a significant milestone in managing the capital structure in line with investment plans and long-term business direction. It strengthens our capacity to sustainably expand investment in digital infrastructure over the long term.

As a leading digital telecommunications company, AIS has evolved from a telecom network operator into a provider of Intelligent Digital Infrastructure, encompassing the expansion of 5G networks, fixed broadband services, as well as investments in new growth areas such as data centers, cloud, and digital services. These initiatives are designed to serve both B2C and B2B customers as Thailand accelerates its transition toward a digital economy and society.

The USD bond offering equivalent to THB 31 billion received strong interest from international investors, reflecting AIS's internationally recognized financial strength.

Key highlights of the transaction include:

• Total orderbook exceeded THB 150 billion, representing more than 5x over subscription
• The issuance represents the largest size of USD bond offering by an Asian telecommunications company (ex-Japan) since 2020.
• The bonds achieved the lowest credit spread ever for US dollar bonds issued by a Thai issuer and by an Asian telecommunications company (ex-Japan) within the same credit rating.
• The 10-year tranche recorded the lowest credit spread in the past 31 years for USD bonds issued by Asian telecommunications companies (ex-Japan) within the same credit rating.

These results reflect AIS's strong financial position and robust cash flow generation. The transaction also helps diversify the Company's funding sources into international markets, broaden its bond investor base, and enhance flexibility in cash flow management. AIS remains committed to prudent financial management to reinforce our strong financial foundation, support future growth, and contribute to the sustainable development of Thailand's digital infrastructure.”

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