Asia Plus Securities stated that Bangkok Expressway and Metro Public Company Limited, or BEM, will hold a bondholder meeting on 15 September to seek approval to raise its Net IBD/E ceiling from 2.5 times to 3.0 times, along with an additional coupon of 0.10% starting from 1 January 2027. The aim is to increase flexibility in its capital structure and support large future investment plans, rather than reflecting liquidity concerns, since Net IBD/E at the end of the second quarter of 2026 was still 2.29 times. The covenant adjustment will increase BEM's borrowing capacity by more than 20 billion baht, supporting major investments that are gradually coming up, including mechanical and electrical works for the Orange Line worth 34 billion baht, procurement of 21 additional Blue Line trains worth 7.2 billion baht, the Double Deck project worth 35 billion baht, as well as opportunities to invest in new PPP projects such as the M9 motorway. The research team maintains a buy recommendation with a 2027 target price of 8.20 baht, viewing the expansion of the Net IBD/E ceiling as preparation for future investment, while earnings have multiple supporting factors from cost reductions, toll increases, and expansion of the rail network.
Bangkok Expressway and Metro Public Company LimitedBEM seeks to raise its Net IBD/E ceiling to 3.0x, increasing borrowing capacity by over 20 billion baht to fund major investments, with a maintained buy rating and 8.20 baht target.
