BBL raises US$1.2 bn overseas
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Thai banks, with Bangkok Bank as the last to join the club, are busy raising overseas funds to finance their aggressive domestic expansion.
BBL, Thailand's largest commercial bank by assets, informed the Stock Exchange of Thailand today that it has issued senior unsecured notes worth US$1.2 billion. The notes, underwritten by Morgan Stanley & Co International, were issued in two tranches: $400 million 5.5-year issue carrying coupon of 2.75 per cent a year; and $800 million 10-year issue carrying coupon of 3.875 per cent.
In September alone, three Thai banks have raised a total of $2.2 billion, inclusive of Siam Commercial Bank's $500 million and Kasikornbank's $500 million. All issues have been oversubscribed, indicative of immense interest by overseas investors.
Tisco Bank's shareholders last week also approved the issuance of senior unsecured notes worth $2 billion.
Overseas interest rates are at historical lows and should remain low for some time given the euro crisis as well as fragile recovery in the US, as well as slow growth in China.
Against the poor external outlook, Thailand's domestic economy is buoyant, boosted by massive public and private investment. The Thai banking sector has witnessed the loan growth of over 10 per cent so far this year.
