Bangkok--27 May--BAY
An attractive investment option with interest payable quarterly
Bank of Ayudhya Public Company Limited (BAY) has announced a subordinated debenture issuance No. 1/2010. The debenture is offered to institutional investors and the general public from the 7th through the 22nd of June 2010 over BAY branches nationwide.
The new issues are subordinated, unsecured and nonconvertible. The debentures, with a tenor of 10 years due in 2020, may be redeemed by the issuer on the fifth anniversary date or interest payment date thereafter.
Mr. Mark Arnold, President and Chief Executive Officer, said, “BAY started out strong in 2010 with an impressive performance in the first quarter. The integration and streamlining of our KRUNGSRI Group companies have resulted in improved synergies and have driven additional loan growth as planned. We intend to maintain this strong momentum by introducing more innovative products and services to serve the Thai consumer. At a time when deposit interest rates remain low, the Bank is issuing this subordinated debenture to offer an attractive investment alternative in the market. Proceeds from this issue will be used as long-term funds to support our aggressive growth strategies in our corporate, SME and consumer banking businesses, and will also strengthen our Tier 2 capital.”
The new debentures, currently under approval by the Securities and Exchange Commission, will be issued in an amount of THB12,000 million with a greenshoe to satisfy incremental investor demand. The debentures have received an A+ rating from TRIS Rating Company Limited and offer an annual return fixed at 4.35% for the first three years, 4.75% from the fourth to the sixth year and a fixed rate of 5.50 % for the remaining four years. Interest is payable quarterly.
As of 31 March 2010, on consolidated basis, the Bank’s BIS ratio stood at 14.5% with Tier 2 capital of 2.75%
ABOUT BANK OF AYUDHYA PUBLIC COMPANY LIMITED
Bank of Ayudhya Public Company Limited [symbol in SET: BAY], established on January 27, 1945, is the fifth largest commercial bank in Thailand with total assets of Baht 822 billion. BAY provides a full range of banking services to both its commercial and individual customers through 580 branches nationwide. On 3 January 2007, BAY and GE Money, a premiere global consumer financial services firm, successfully became strategic partners. GE Money and the Ratanarak Group are now major shareholders with 33% and 25% stakes in BAY, respectively. For more information, please visit Bank of Ayudhya website, www.krungsri.com
FOR MEDIA INQUIRIES, PLEASE CONTACT:
Corporate Communications Department
Bank of Ayudhya PCL.
Tel: 02 296 2443, 02 296 3795
Fax: 02 683 1271
Email:
[email protected]