Bangkok--6 May--SCB Siam Commercial Bank PCL. plans to issue 10-year term subordinated debentures assigned AA- from the accredited Fitch Ratings for an aggregate amount of 20 billion Baht. A new serie of subordinated debentures has been launched to support its business expansion and will be counted as the Bank's tier 2 capital. Depositors and Investors who are interested in long-term investment with a leading financial institution such as SCB can contact any of SCB branches nationwide during the subscription period between 12 - 14 May 2008. The minimum subscription is 100,000 baht. Siam Commercial Bank President Mrs. Kannikar Chalitaporn revealed that amidst the intensifying competition and volatile world economy, SCB has maintained its solid financial position with a long and illustrious growth rate, reflected through its 1Q08 earnings of 6.7 billion baht, an increase of 83.5% y-o-y. SCB is the largest financial institution in terms of market capitalization in Thailand and is ranked third by total assets with capital adequacy ratio of 13.2%, consisting 10.7% in tier 1 and 2.5% in tier 2. "Our next pace is to grow with quality by maintaining a solid capital adequacy. In raising the capital, SCB will launch junior debentures worth 20 billion baht and thus will prompt the Bank's tier 2 capital to move up. The strengthened capital will not only facilitate the Bank's expansion of lending portfolio, but also will secure the rising risk-weighted assets spurred by SCB subsidiaries after the adoption of consolidated supervision, including the market risk and operation risk under the Basel II implementation." SCB will pay fixed-to-floating yield every six months for the 10-year subordinated debentures as follows:Year 1 - 2 : Coupon rate is fixed at 4.25% per annumYear 3 - 6: Coupon rate is fixed at 5.25 per annumYear 7 - 10: Coupon rate is fixed at 6.25% per annum However, SCB may exercise its right to redeem the debentures before maturity after five years have been lapsed. In such circumstances, SCB will pay a 0.25% extra interest of the nominal value. The interested investors will feel even more secure in the purchase of the Bank's junior debentures given the AA- rating assigned by Fitch Ratings.