Bangkok--27 Jun--CIMB Thai
CIMB Thai Bank plans to issue unsecured, named subordinated debenture worth THB 3 billion, with interest rate of 5.35% p.a. and 10-year maturity (callable).
Mr. Sutee Losoponkul, First Executive Vice President, Treasury Group Head, disclosed that CIMB Thai would launch a 10-year subordinated debenture for an aggregate amount of THB 3 billion carrying constant interest rate of 5.35% p.a. to individual and institutional investors. Each subscription amount is at least THB 100,000 or the multiple of THB 100,000. The prospectus is available and the subscription can be made during 4-13 July 2011 at 8.30-15.30 hrs., at any of the 154 CIMB Thai branches across the country.
During the 10-year term, CIMB Thai may exercise its right to pre-redeem the debenture subject to approval by the Bank of Thailand under the following conditions:
1. Before the end of a 5-year period as from the debenture issue date, if this debenture cannot be counted by the Bank as tier 2 capital or can be counted as tier 2 capital at lower than 50% of tier 1 capital, or counting of this debenture as tier 2 capital must be reduced.
2. Upon the end of a 5-year period or at any due date of interest payment after the end of a 5-year period.
“This debenture has been assigned “A+(tha)” rating by Fitch Ratings (Thailand) Co., Ltd. With such rating taken into account, the proposed interest rate of 5.35% p.a. throughout the 10-year term is considered attractive for investors who seek long-term investments with such a firm financial institution as CIMB Thai, a member of CIMB Group with strong networks and clear vision of becoming a leading financial institution in ASEAN,” Mr. Sutee added.
This debenture is considered giving very high returns compared with 5-year government bond yield of 3.75% and 10-year government bond yield of 3.93% as of 23 June 2011.
Fitch Ratings has recently upgraded CIMB Thai’s long-term foreign currency IDR from “BBB-“ to “BBB” with stable outlook, and long-term national rating from “A+(tha)” to “AA-(tha)” with stable outlook. The improved ratings clearly reflect the strengthened linkage in terms of business strategies and operations between CIMB Thai and Malaysia’s CIMB Bank Berhad (CIMB: BBB+/positive) and the improved operations and strength of CIMB Thai itself for the past 12-18 months which have enabled its ratings to move closer to those of the Group.
Copies of the prospectus are available and subscription of the debenture can be made at any CIMB Thai branches nationwide.
For more information, please contact us at Tel. 0-2626-7777 or www.cimbthai.com
*Note: Investments carry certain risks. Investors should study information in the prospectus before making investment decision.