SCB

            Siam Commercial Bank will launch 10-year subordinated debentures in February 2012 worth 20 billion baht, offering a coupon rate of 4.5% p.a. payable every 3 months.  The investment requires a minimum subscription amount of 100,000 baht.  

            Backed by strong financial performance in 2011, when the Bank achieved record high net profits, SCB is confident that the issue will attract investors.  Siam Commercial Bank was established in 1906 as Thailand’s first bank, and its shares are held mainly by the Crown Property Bureau and Ministry of Finance.  The Bank consistently reports outstanding financial performance.  This debt issuance will be open for subscription by general investors during 17-23 February through SCB branches nationwide.

             Speaking about the upcoming subdebt offer, Siam Commercial Bank President Kannikar  Chalitaporn said, "Siam Commercial Bank has continuously demonstrated stable performance and outstanding growth, as shown by its results in 2011, when it had the  strongest operating performance in Thailand’s commercial banking sector.  Going forward, the Bank plans to raise funds to support future loan and business expansion by issuing the 10-year subordinated and unsecured debentures, with name registered and a debenture holder representative, worth 20 billion baht to offer to general investors.  The issue is being filed with the Office of Securities and Exchange Commission.

          “Having been rated AA- (tha) by Fitch Rating (Thailand), the debts, offered to general investors, will pay coupon rate of 4.5% p.a. every 3 months with bullet repayment of principal, and will be due on 24 February 2022 with call option. Proceeds from the issue will be classified as second tier capital, which will support the Bank's strength.  The Bank is confident that the issue will be well accepted by investors who are keen on long-term investment and savings due to the low risk and attractive interest rate compared to other long-term financial instruments.  Interested investors can subscribe to the issue or request a prospectus at any of more than 1,000 SCB branches nationwide between 17-23 February, 2012,” Mrs. Kannikar said.

          SCB has a market capitalization of 396 billion baht, the highest in the commercial banking sector. The Bank continuously reports record high profitability from operating performance. In 2011, the Bank's net profit stood at 36 billion baht, the highest in the commercial banking sector, while ROE rose above 20%.  The Bank has managed its asset quality effectively, and was named “Best Bank in Thailand” for six consecutive years (2006-2011) by Global Finance magazine (U.S.A.).