Siam Commercial Bank PCL ("SCB") announced that it successfully priced dual-tranche US$1 billion Reg S Senior Unsecured Notes (the "Notes") on 29 January 2019, comprising US$500 million 5-year notes with a coupon of 3.90% p.a. and US$500 million 10-year notes with a coupon of 4.40% p.a. Listed on Singapore Exchange Securities Trading Limited ("SGX-ST"), the Notes are rated Baa1 by Moody's, BBB+ by S&P and BBB+ by Fitch. Barclays, HSBC and J.P. Morgan Securities acted as joint bookrunners and lead managers.
The transaction represents:
- Siam Commercial Bank's debut 10-year offering and its largest USD bond offering to date
- The first 10-year senior tranche in the Asian Reg S markets from financial institution in 2019
- One of the largest orderbooks that a Thai bank deal has seen in recent times. The final orderbook stood over US$4 billion, representing 4 times oversubscription
- One of the largest price compressions from Initial Price Guidance ("IPG") for a Thai bank at 32.5 bps across both tranches
Geographically, 83% of the Notes were distributed in Asia and 17% in Europe. The Notes were distributed to high quality fixed income accounts: 56% to Fund Managers & Asset Managers, 23% to Banks, 17% to Insurances, Pension Funds, & Central Banks and 4% to others.
Arthid Nanthawithaya, President & Chief Executive Officer of SCB, commented, "we are grateful for the relentless support from the international fixed income investors for their confidence in the strength of Thailand, and more specifically, Siam Commercial Bank. The offering was very well accepted from the investors and enjoyed a very strong momentum from the time the book opened. We are very pleased with the outcome, and the proceed would further enhance the strength of our foreign currency positions at a competitive cost of fund to continuously serve the needs of our clients in all aspects".