Kasikornbank, one of Thailand’s largest commercial banks, has launched an $800 million sale of U.S. dollar Tier 2 subordinated bonds, according to an updated term sheet on Tuesday.
Tier 2 bonds are a form of bank capital that can absorb losses if the lender gets into financial difficulty.
The bonds were launched at 173 basis points over U.S. Treasuries, tighter than the initial price guidance of about 205 basis points.
They have a 10-year maturity, with the bank able to repay them early after five years, subject to regulatory approval.
The bonds will mature on September 17, 2036, and are expected to be rated ‘Ba1’ by Moody’s.
Kasikornbank is rated ‘Baa1’ by Moody’s and ‘BBB’ by S&P and Fitch.
Proceeds will be used for general corporate purposes.
BNP Paribas, Citigroup, JPMorgan and Standard Chartered Bank are joint lead managers and bookrunners.
Reuters
