กรุงเทพฯ--10 มี.ค.--Krungthai Card
KTC, the leading Thai credit card and consumer finance company, signed syndicated offshore loan agreement with foreign banks under which they will be granted a loan of 15 Billion Japanese Yen or 5,160 Million Baht, with an average interest rate of 6.3% per year, due in 3 years. The fund will allow KTC to expand their network of partners and prepare them for future business growth. KTC will repay the loan in Baht when it is due in order to protect against currency exchange rates related risks.
Mr. Niwatt Chittalarn, President and Chief Executive Officer, “KTC” or Krungthai Card Public Company Limited, said “Our 1/2003 debentures worth 5 Billion Baht will be due for redemption on the 8th of April 2006 and we have attempted to diversify in many ways in the past year to ensure availability of funds. However, domestic circumstances make the issuance of debentures less attractive so we had to consider other methods of fund raising as well. Syndicated offshore loan appear to be exactly what we need. This debut international syndicated loan facility will lower the amount of local debentures and allow us to issue more THB debentures. This will help enhance our borrowing capability as several funds are interested in investment in large proportion but not much more additional investment is possible.”
“The loan is for 15 Billion Yen or 5,160 Million Baht, with an average interest rate of 6.3% per year, due in 3 years. This is not different from a domestic loan but here we are also talking about the chance to develop international partners and maximize our future business potentials. This debut international syndicated loan facility has attracted substantial interest in the bank market.”
“The facility was distributed to 10 international banks including The Bank of Tokyo-Mitsubishi UFJ, Ltd., Mizuho Corporate Bank, Ltd., and The Norinchukin Bank,
Singapore Branch who joined Barclays Capital as the Mandated Lead Arrangers. An additional 6 banks including The Sumitomo Trust & Banking Co., Ltd., Singapore Branch, The International Commercial Bank of China, Offshore Banking Branch, Bank of China Limited, Bangkok Branch & Bangkok International Banking Facility, Bank of Taiwan, Singapore Branch, Chang Hwa Commercial Bank Ltd., Singapore Branch, and
E.Sun Commercial Bank, Ltd., Offshore Banking Branch joined during the general syndication. Barclays Bank PLC, Hong Kong Branch, is appointed as the Facility Agent of the Facility.”
“KTC decided to seek foreign capital sources because of favorable market condition which makes it possible for us to procure the needed amount of fund before the interest rates are raised. It’s flexibility in structuring such as currency, terms and rapport development with foreign loan sources and promotion of KTC on a broader scale. Also, borrowing credibility is increased with the amount fully underwritten by AA rated Barclays Bank Plc.”
“Besides, currency exchange rates related risks are managed through cross currency swap. Both principal and interests of this syndicated offshore loan are in Thai Baht. There is no currency exchange rates related risk.”, said Mr. Niwatt in conclusion.
Note to editor
Krungthai Card Public Company Limited or “KTC” is a leader in the credit card and consumer loans industry with services and administration quality and efficiency on the international level. Operating since December 1996, KTC aims to be transparent, focused and truly relevant to the consumers’ requirements. Presently, KTC has approximately 800 employees and all KTC cardholders can enjoy services and conveniences from over 146,000 establishments across the country. It has 16 KTC Boutique Branches and 35 KTC Touch Points, comprehensive financial service centers to accommodate the expansion of business, and offers services including financial transactions, consumer loans, electronic payment system, monthly service fee payments and partnerships with leading business organizations to bring added privileges and benefits to KTC cardholders. For further information, please visit the KTC website at: www.ktc.co.th .
For more information:
Public and Corporate Affairs Department
Krungthai Card Public Company Limited
Kandtharat Chermchitphong Tel. 0-2665-5057
Suchada Weerasakulrak Tel. 0-2665-5732
Fax. 0-2665-5046
E-mail: [email protected]