Bangkok--8 Oct--TMB
TMB buying back subordinated debentures and issuing new subordinated debentures worth up to THB10 billion with coupon rates starting at 5.00% with priority given to existing holders.
TMB Bank Public Company Limited has received an approval from the SEC to issue up to THB 10 billion worth of 10 year subordinated debentures No. 1/2552 callable from the end of fifth year onwards. The new debentures will have coupon rates of 5.00%, 5.25% and 6.50% for years 1-3, years 4-5, and years 6-10 respectively and payable quarterly.
TMB will give privilege to its existing holders of subordinated debentures No. 12 due in year 2015 to sell back the debentures and subscribe to the new debentures for the same amount. Existing holders who participate in the offer will immediately receive a higher coupon rate from 4% to 5%. If the existing holders wish to subscribe more new debentures, they will have first priority on allocation subject to first come first serve allotment mechanism. However, should there be any debentures remaining, the bank will allot such remaining debentures to new investors, also subject to first come first serve allotment mechanism. Sell back and subscription period is scheduled concurrently for October 19-28.
TRIS Rating Co., Ltd. has assigned a rating of “A” to TMB’s proposed new issue reflecting the bank’s capable management team and ongoing support from its major shareholders including the Ministry of Finance and ING Bank N.V. which have helped strengthen TMB’s franchise value and financial profiles.
Mr. Boontuck Wungcharoen, CEO of TMB stated that TMB earlier reported a net profit of THB829 million for the first half of 2009 and expects better operating performance in the second half of 2009 driven by the economic recovery, which began in the second quarter of 2009. TMB has a strong capital position with a CAR (Capital Adequacy Ratio) of 15.0% as of the second quarter of 2009 compared to the minimum requirement set by Bank of Thailand at 8.5%. A major transformation program has been continuing since the end of 2008 with an aim to become a leading Thai bank with international standards. Key initiatives include organizational restructuring to be a customer-centric organization, international standard risk management systems implementation and the Human Resources Transformation Program, all of which have been designed to build a strong foundation for the Bank, increase competitiveness, offer distinguished products, services and solutions which carter to different needs of customers, and create long-term sustainable growth.
TMB Bank Public Company Limited
Founded on 8 November 1957, TMB Bank Pcl. operates a commercial banking business under a license granted by the Ministry of Finance, and with consent given by the Bank of Thailand. It also operates a securities business licensed by the Ministry of Finance and agreed to by the Securities Exchange Commission.
TMB aims to respond to the needs of its clients through its 486 branch network, 103 foreign exchange centers, 2,152 ATMs, as well as electronics banking systems. Its business encompasses commercial banking, offshore banking, investment banking, and other businesses as permitted by the regulatory authorities, including acting as an insurance agent for its alliance insurance companies.
Listed on the Stock Exchange of Thailand, TMB is the sixth largest bank, by total assets, in Thailand. As at 30 June 2009, its total assets are valued at THB 568,744 million.
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