Stock/Finance Friday September 21, 2012 12:01
KASIKORNBANK recently issued 500 million USD in debentures, or approximately 15 billion Baht, to foreign investors. The US dollar-denominated debentures, with five years and six months of maturity, carrying a 3-percent coupon rate, are aimed at maintaining the Bank’s liquidity stability in foreign currency in order to support long-term foreign-currency lending expansion as well as the Bank’s overseas business.
Mr. Somkiat Sirichatchai, Senior Executive Vice President of KASIKORNBANK, said KBank had recently completed an overseas roadshow to issue foreign-currency senior unsecured notes worth 500 million USD, with five years and six months of tenor. Carrying a 3-percent coupon rate, payable every six months, the instruments will be due in 2018. The notes were issued to institutional investors in Singapore, Hong Kong and United Kingdom. Notes issued via KBank’s Hong Kong Branch have been oversubscribed by 5.4 times.
Mr. Somkiat added that the Bank’s first foreign-currency debenture issuance in 16 years had been the focus of much interest and had met with an overwhelming response, reflecting the Bank’s creditworthiness among foreign investors. The Bank’s debenture issuance was carried out in order to strengthen the Bank’s foreign-currency liquidity stability. It was also a timely move, as current long-term interest rates remain low compared to earlier periods.
The notes have been rated at A3 by Moody’s Investors Service and BBB+ by Standard and Poor’s. Of the institutional investors subscribing the instruments, 76 percent are based in Asia and 24 percent in Europe.