This transaction is significant on various accounts:
- First US$ bond issuance out of Thailand in 2014
- 6.4 times oversubscription with strong support from investors in Asia, Europe and the United States participating in the transaction.
The Notes have been priced at 180 basis points over the 5-year US Treasury Note, at a price of 99.60 to yield 3.588%. The Notes will be denominated in US dollars, and will bear fixed interest of 3.50% per annum, with interest payable semi-annually in arrears. SCB will apply the net proceeds to meet the funding requirement of SCB and its foreign branches and for general corporate purposes.
In terms of geographic distribution, the Notes were distributed 68% in Asia, 19% in Europe and 13% in the United States. The Notes were distributed to high quality fixed income accounts: 58% to fund managers, 21% to banks, 17% to insurance / sovereign wealth funds and 4% to private banks.
Dr. Vichit Suraphongchai, Chairman of the Executive Committee of SCB, commented, “We are pleased to see the overwhelming demand for our transaction. Despite the current political backdrop in Thailand, the demand for and success of this transaction attests to the continued strong confidence of the global financial markets for SCB credit and, above all, for Thailand. We are pleased to have reopened the international bond markets for Thai borrowers".
Barclays and Standard Chartered Bank acted as joint book-runners and lead managers.