Bangkok--15 Nov--Bangkok Bank
Bangkok Bank is issuing unsecured subordinated debentures with a 10-year maturity (to 2022) carrying an annual coupon rate of 4.375%, paid every six months. The debentures will be offered to institutional investors and the public between November 26 — December 7, 2012 at all Bangkok Bank branches, except micro branches. Fitch Ratings (Thailand) has assigned a National Long-Term rating of “AA-(tha)”.
Bangkok Bank President Chartsiri Sophonpanich said the bank plans to issue 10-year subordinated debentures carrying a fixed coupon rate of 4.275% per annum, to be paid every six months. They are redeemable in 2022 although the bank has an early redemption right after five years. Institutional investors and the public can make a minimum purchase of 200,000 Baht and purchases thereafter in multiples of 100,000 Baht between Monday 26 November and Friday 7 December 2012 at all Bangkok Bank branches except micro branches.
The prospectus for issuing the debentures, which have been rated “AA-(tha)” by Fitch Ratings (Thailand), has been filed with the Office of the Securities and Exchange Commission. The bank will offer debentures worth 20 billion Baht with an option to raise another 10 billion Baht should there be sufficient demand.
The offering will help the bank raise long-term capital at an appropriate interest rate and presents a good option for long-term savings and investment. The positive rating is supported by Bangkok Bank’s sound capital and profitability, strong asset quality and reserves, as well as its healthy level of domestic deposits. At the end of September 2012, the bank had total assets of 2.280 trillion Baht. The bank’s Capital Adequacy Ratio and Tier 1 BIS Ratio were high at 15.9% and 12.8%, respectively.