Siam Commercial Bank PCL (“SCB”) announced that on 9th November 2017 it had priced US$500 million 2.75% 5.5-year Reg-S Senior Unsecured Notes due 2023 (the “Notes”). The Notes are issued through SCB’s Cayman Islands branch and are rated Baa1 by Moody’s, BBB+ by S&P and BBB+ by Fitch.
This transaction is significant on various accounts:
• The final pricing of T+92.5bps is the tightest pricing on a Thai bank fixed-rated public USD bond offering in over a decade
• The transaction represents the largest sized bank issuance by a Thai Bank in 2017 YTD
• At the peak, ahead of release of final price guidance the orderbooks stood at c. USD1.8 billion. This represents one of the largest order books that a Thai Bank deal has seen in recent times
The Notes had been priced at 92.5 basis points over the 5-year US Treasury, at a price of 99.017 to yield 2.945%. The Notes will be denominated in US dollars, and will bear fixed interest of 2.75% 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 97% in Asia and 3% in Europe. The Notes were distributed to high quality fixed income accounts: 53% to banks, 37% to Fund Managers & Asset Managers, 9% to Agencies and 1% to others.
Mr. Arthid Nanthawithaya, President & CEO of SCB, commented, “We are thankful for the continued strong support of the fixed income investors for our transaction in specific and for their confidence in Thailand in general. The execution process was swift and the transaction enjoyed a strong momentum from the time the books were opened. We are very pleased with the pricing outcome and the range of high quality investors involved in the transaction.”
Barclays, HSBC and Mizuho Securities acted as joint bookrunners and lead managers.
This announcement is for information only and nothing in this announcement constitutes an offer of securities for sale, or a solicitation of an offer to purchase securities, in the United States or any other jurisdiction where such offer, solicitation or sale would be unlawful. Any such securities will not be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), and will not and may not be offered, sold or delivered within the United States or to, or for the account or benefit of, U.S. persons except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. Accordingly, any such securities will only be offered and sold outside the United States to non-U.S. persons in offshore transactions in reliance on Regulation S under the Securities Act. No public offering of such securities will be made in the United States or in any other jurisdiction where such an offering is restricted or prohibited.