Mrs. Wasukarn Visansawatdi, President, Secondary Mortgage Corporation (SMC), a state enterprise under the Ministry of Finance, said SPV-SMC Co., Ltd., SMC's 49%-owned subsidiary, has issued a new debenture under its securitization plan worth 6,000 million baht to institutional and/or high net-worth investors on 29 November 2016. It is a 5-year debenture with fixed interest rate of 3.24% p.a., amortizing monthly together with interest payment throughout the life of the debenture. With a rating of AA- assigned by TRIS Rating, the debenture offering has come out a success with warm welcome from investors. This has represented another step of SMC's development of its securitization program toward international standards, which is in line with its mission. SMC has appointed Kasikorn Bank, Krungsri Bank and CIMB Thai Bank as the underwriters of this bond issue.
Mr. Thiti Tantikulanan, Kasikorn Bank's Capital Markets Business Division Head, Mr. Thitawat Asaves, Krungsri Bank's Executive Vice President for Investment Banking Division, and Mr. Konthee Prasertwongse, CIMB Thai Bank's Debt Capital Markets Team Head, added "This MBS under the securitization program is the 9th MBS issue of SMC which is the country's sole issuer and offeror of this type of bond. This bond offering has been a great success as regards the issue value which is the highest since SMC began to raise fund under the securitization plan in 2002 given its guarantee restructure in a bid to develop the bond issue more up to international standards. Good responses have still been received from the investors, reflecting their better understanding of securitization risk and good prospects for Thailand's debt capital market development. This debt issue in such a high value of 6,000 million baht amidst the current volatility in the local debt instrument market can be regarded as a very challenging task, especially for a 5-year amortizing bond through securitization, which is a complex bond type compared with other bond issues in general. However, this bond offering has helped expanded both institutional and high net-worth investor bases, reaching out not only to the existing investors in SMC's MBS, but also the new ones. At the same time, it has reaffirmed investor confidence in SMC, which would help ensure this state enterprise's greater success in future fund raising through securitization bond."