Bangkok--4 Apr--Bangkok Bank
ICBC (Thai) Leasing successfully issued 3Y and 4Y Unsubordinated and Unsecured Debentures without a Debentureholders’ Representative with total amount of THB 6,500 Mil. The Debentures were offered to Institutional and Co-Operative investors who showed overwhelming interests, reflecting investors’ confidence in the Company’s business and potential growth in the future.
Dr. Ye Hu, Chairman of Industrial and Commercial Bank of China (Thai) PCL stated that “Although ICBC (Thai) is not a Guarantor of this Debentures, ICBC (Thai) owns 99.99 per cent ICBC (Thai) Leasing’s shares and always provides ICBCTL supports in all areas including financing, management, risk management, and experienced human resources from ICBC Group in China. ICBC (Thai) positions ICBCTL as one of its financial arms and as a crucial key for it to penetrate into the consumer finance business in Thailand. Such full 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 issue bond for the second time and the mission is completed with great success. The Company was able to issue Debentures with total amount of THB 6,500 Mil., consisting of THB 3,200 Mil. 3Y-tranche with coupon rate 3.56 per cent and THB 3,300 Mil. 4Y-tranche with coupon rate 3.82 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 5,000 Mil., has been upsized by THB 1,500 Mil. to THB 6,500 Mil. to accommodate massive demand from Institutional and Co-Operative Investors. This demonstrated investors’ confidence in the Company.
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. Despite the fact that ICBC (Thai) is not a Guarantor, Debentures have been so well responded by Institutional Investors that demand was about 6,500 Mil. higher than previous Debentures (5,600 Mil.). Moreover, ICBC (Thai) Leasing was able to extend bond duration from 3-Y tenor to 4-Y tenor, which matches with hire-purchase portfolio duration. 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 Short-term Debentures in the near future.”
Mr. Surabhan Purnagupta, Senior Vice President and Manager, Corporate Finance, Investment Banking Group, Bangkok Bank PCL, stated that “The AAA rating from Fitch Ratings is based on the believe that there will be high support from ICBC (Thai) who solely owns shares in ICBC (Thai) Leasing, in case of need, together with the solid financial performance of the Company during the past 5 years, with impressive and consistent growth in both asset and profitability, have shaped up investors’ confidence to invest in this Debentures.”
Mr.Suradech Kietthanakorn, Investment Banking Business Division Head, KASIKORNBANK PCL, stated that “Both 3-Y and 4-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.”