By focusing on creating stable and sustainable growth in the long run while strictly upholding corporate governance principles and maintaining holistic financial management within Pruksa Group to prevent risks concerning financial liquidity and volatility in terms of interest rates and currency exchange rates, the Company therefore developed an investment plan to expand its business in the most careful manner by taking into account various capital sources and determining capital structure that is capable of maintaining major financial ratios at appropriate level and comparable to other businesses within the same industry. The Company also considered the significance of risk management by acquiring loans from various financial institutions and managing risks resulting from fluctuating interest rates and foreign currency exchange rates using hedging tools that are suited with its business structure by mainly focusing on distributing risks and competitive financial costs such as by issuing bonds to institutional and retail investors and issuing short-term promissory notes and bill of exchange to ensure there is sufficient working capital both in short and long run. The Company also placed great importance of financial discipline and has therefore continuously maintained good relations with institutional investors in both capital and financial markets to build confidence and trusts in terms of corporate performance. After having continuously monitored changes in financing-related factors, the Company strongly believes that it can sufficiently meet its capital needs for future business expansion by relying on appropriate financial costs and the following financial policy:
- Interest-bearing Debt/Equity Ratio must not exceed 2 : 1
- Short-term Debt must not exceed 40 percent of total interest-bearing debt
- Floating interest-bearing Debt must not exceed 40 percent of total interest-bearing debt