Bangkok--17 Sep--Siam Commercial Bank
Siam Commercial Bank Public Company Limited (SCB) has successfully priced a US$500 million RegS only re-opening of its existing 3.375% Senior Unsecured Notes due 2017 (the "Notes") among international institution investors. The Notes are issued by SCB’s Hong Kong branch and are rated A3 by Moody's, BBB+ by S&P and BBB+ by Fitch. The proceeds will be used for the bank’s general funding purpose.
This transaction is significant for various reasons:
- Re-opened the international bond markets for Thai banks
- Strong participation from investors with 4.6 times oversubscription and 150 accounts in Asia and Europe participating in the transaction
- Priced with a minimal new issue concession in spite of the heavy pending supply from Thailand
Mrs Kannikar Chalitaporn, President of SCB, commented, “We are pleased to see the robust demand for our transaction and the strong perception of our credit by the international investor community. The execution process was swift and ensured a strong momentum to our transaction. The lead managers have provided us with the right pricing strategy to help us achieve our targets for this fund raising exercise."
The Notes priced at 215 basis points over the 5-year US Treasury Note, at a price of 102.731% to yield 2.786%. The Notes are denominated in US dollars, and will bear fixed interest of 3.375% per annum, with interest payable semi-annually in arrears. The Notes are immediately fungible with the existing Reg S tranche, taking the outstanding issue size to a total of US$1.1 billion.
In terms of geographic distribution, 73% of the Notes were distributed in Asia and 27% in Europe. The Notes were distributed to high quality fixed income accounts: 57% to fund managers, 25% to banks, 9% to private banks, 6% to insurance funds and 3% to public sector institutions.
Barclays and Deutsche Bank acted as joint bookrunners and lead managers on the transaction.