KTB plans Bt250 bn debenture issuance

The Bt250-billion debenture issuance is part of the additional Bt310 billion ceiling approved by the bank’s shareholders on Wednesday. The bank currently has debentures of Bt41.31 billion, which is not enough to serve its loan expansion and replace redeemed debentures, said Apisak Tantivora-vong, president of KTB.
“We explained to the shareholders that it was essential to increase the amount of debentures. However, the actual amount that we plan to use is about Bt250 billion, of which Bt50 billion is for a new lot of debentures to replace the existing ones. The remainder will be reserved for funding loans and our investments,” he said.
After the shareholders’ approval, KTB will have a ceiling for the issuance and offering debentures of Bt351 billion.
Apisak said that to serve its business expansion, the bank should have various sources of funds, and debentures will be issued to suit prevailing market conditions.
He said the bank had no plan to issue hybrid subordinated debentures of Hybrid Tier 1 as Basel III regulations of |the Bank for International Settle-ments were not likely to allow them.
KTB has said it might increase registered capital as its Tier 1 is 8.7 per cent, the lowest among the four major banks.
However, it has no plan to increase its capital despite dramatic loan growth.
Apisak said the bank’s lending in the first quarter grew by 4.5 per cent year on year while loan growth for the whole year was projected at 7-8 per cent.
KTB chairman Sathit Limpong-pan said the bank would next month set up a nomination committee to select a new president, as Apisak will retire in November.