Bangkok--25 Oct--Bangkok Bank
ICBC (Thai) Leasing successfully issued 2Y and 3Y Guaranteed Debentures for the first time with total amount of THB 5,600 Mil. The Debentures were offered to Institutional and High Net-Worth investors who showed overwhelming interests, reflecting investors’ confidence in the Company’s business and potential growth in the future. This success leads the Company to consider issuing unsecured debentures in the next offerings.
Dr. Ye Hu, Chairman of Industrial and Commercial Bank of China (Thai) PCL stated that “ICBC (Thai) positions ICBC (Thai) Leasing as one of its financial arms and as a crucial key for it to penetrate into the consumer finance business in Thailand. Wholly owned by ICBC (Thai), ICBC (Thai) Leasing is treated like a department of the bank and thus gets supports in all areas including financing, management, risk management, and experienced human resources from ICBC Group in China. Such supports are meant to help ICBC (Thai) Leasing become one of the leading leasing businesses in Thailand.”
To support further business expansion, ICBC (Thai) Leasing decided to tap the bond market for the first time and the mission is completed with great success. The Company was able to issue Debentures with total amount of THB 5,600 Mil., consisting of THB 3,000 Mil. 2Y-tranche with coupon rate 3.79 per cent and THB 2,600 Mil. 3Y-tranche with coupon rate 3.98 per cent. Bangkok Bank PCL and Kasikorn Bank PCL were Joint-Lead Arrangers of the transaction. The issue size, although originally targeted the issue size of THB 4,000 Mil., was upsized by THB 1,600 Mil. to THB 5,600 Mil. to accommodate massive demand from Institutional and High Net-Worth Investors. This demonstrated investors’ confidence in both the Company and its guarantor, ICBC (Thai).
Mr.Ong-ard Vorachattarn, President of ICBC (Thai) Leasing, stated that “The achievement of the Company’s Debentures was attributable to investors’ confidence in the Company’s business, especially in its performance during the past few years, together with the financial strength of ICBC (Thai) as the major shareholder (99.99 per cent) and the Guarantor. The fund raised through the Debentures will be used to expand the Company’s hire-purchase portfolio. Given this successful milestone, ICBC (Thai) Leasing is now considering to issue senior and unsecured debentures in the near future.”
Mr. Surabhan Purnagupta, SVP and Manager, Corporate Finance, Investment Banking Group, Bangkok Bank PCL, stated that “The AAA rating from Fitch is based on an unconditional and irrevocable guarantee from ICBC (Thai) who owns 99.99 per cent shares in ICBC (Thai) Leasing, together with the solid financial performance of the Company during the past 5 years, its 3 per cent market share and being one of the Top-ten players in Thailand’s hire-purchase market in 2011, has shaped up investors’ confidence to invest in this inaugural Debentures.”
Mr.Panop Ansusinha, Investment Banking Business Division Head, KASIKORNBANK PCL, stated that “Both 2-Y and 3-Y Debentures were so well received by Institutional Investors that demand was higher than the original issue size targeted by the Company. Having seen investors’ confidence in the Company, Kasikorn Bank PCL and Bangkok Bank PCL feel confident that ICBC (Thai) Leasing would be able to regularly issue Debentures as a regular issuer in Thai Debt Capital Market and would gain continous success in the future.”