SCB dollar bond issue oversubscribed three times
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Thailand's first dollar-denominated bond issue for this year experienced a huge success, with investors oversubscribing the US$600-million (Bt18.4 billion) offer by three times.
Siam Commercial Bank said in a statement that demand was huge in Asia, Europe and the United States for the senior unsecured notes.
The bank was also the last issuer of dollar-denominated bonds back in May 2011. The notes were distributed 62 per cent in Asia, 26 per cent in Europe and 12 per cent in the US.
About 38 per cent went to fund managers, 31 per cent to banks, 15 per cent to central banks/public institutions, 9 per cent to insurance funds and 7 per cent to private banks.
Barclays Capital and Citigroup acted as joint book runners and lead managers.
The five-year notes, issued by the Hong Kong branch, were rated “A3” by Moody’s Investors Service, “BBB+” by Standard & Poor’s Ratings Services and “BBB+” by Fitch Rating.
The coupon rate was set at 3.375 per cent, priced 252.5 basis points over the five-year US Treasury note.
“The strong order book and the fine pricing are testimonies to the credibility and strength of our franchise among the global investor base,” president Kannikar Chalitaporn said.
“Siam Commercial Bank set out to create a benchmark transaction and is pleased to have demonstrated, yet again, the strong interest in Thai issues across the global capital markets,” she said.
