TOKYO -- Japan's Century Tokyo Leasing will issue 1 billion baht ($28.5 million) in three-year straight bonds as early as Thursday, with plans to use the proceeds to strengthen the company's rental car business in Thailand.
This will mark the leasing giant's third issuance of baht-denominated bonds since March 2015, with the coupon falling below 2% for the first time. Target buyers are institutional investors in Thailand. The company seeks to hedge against currency fluctuations by diversifying its fundraising methods.
Century Tokyo recently renamed its Thai car leasing business after Japanese unit Nippon Rent-A-Car Service. Leasing and rental businesses are not separate in Thailand.
Japanese cars are popular among Thai consumers. Century Tokyo also will use the bond proceeds for ads promoting its car rental services to those traveling to Japan from Thailand.
Century Tokyo has been expanding its business base. It has purchased a Thai sales finance company from Hitachi Construction Machinery and leasing-business assets from trading house Mitsui & Co.