Standard Chartered Bank joins ADB launch of second Thai baht bond
October 10, 2006 | 12:00am
The Standard Chartered Bank (Thai) and Bank of Ayudhya was named lead arrangers for the second Thai baht (THB) bond in the domestic capital market of Thailand issued by the Asian Development Bank (ADB).
The issue has a total principal amount of THB6.5 billion and consists of two tranches: a five-year THB5.5-billion tranche, and a 10-year THB1 billion tranche.
The five-year tranche carries a semi-annual coupon of 5.34 percent per annum and was priced at a spread of 20 basis points (bps) over the interpolated Thai government bond curve.
The 10-year tranche carries a semi-annual coupon of 5.54 percent and was priced at a spread of 25 bps over the interpolated Thai government bond curve.
Before launching the issue, the ADB and the lead arrangers conducted a road show in Bangkok to present the deal to key institutional investors.
"After ADB’s market opening transactions in Thailand last year, our return to the Thai Baht market represents another important step in ADB’s quest for developing regional bond markets," ADB vice president Kempheng Pholsena said in a statement. The Thai Baht issue was launched in conjunction with the establishment of ADB’s $10-billion Asian Currency Note Program.
The program is Asia’s first multi-currency platform since the Asian financial crisis that links the domestic capital markets in the region under a single unified framework with a common set of documents under English law.
"The Thai government has provided its in-principle approval for including Thailand in the Program in the near future," Pholsena added.
The bond issue underscores ADB’s confidence in the Thai capital market and will help to enhance liquidity in the cross-currency swap market, particularly as ADB plans to undertake currency swap transactions for asset and liability management purposes.
The bonds were structured into two tranches with five-and 10-year tenors, respectively, so as to capture a broad spectrum of investors. The issue attracted strong demand from investors.
The issue has a total principal amount of THB6.5 billion and consists of two tranches: a five-year THB5.5-billion tranche, and a 10-year THB1 billion tranche.
The five-year tranche carries a semi-annual coupon of 5.34 percent per annum and was priced at a spread of 20 basis points (bps) over the interpolated Thai government bond curve.
The 10-year tranche carries a semi-annual coupon of 5.54 percent and was priced at a spread of 25 bps over the interpolated Thai government bond curve.
Before launching the issue, the ADB and the lead arrangers conducted a road show in Bangkok to present the deal to key institutional investors.
"After ADB’s market opening transactions in Thailand last year, our return to the Thai Baht market represents another important step in ADB’s quest for developing regional bond markets," ADB vice president Kempheng Pholsena said in a statement. The Thai Baht issue was launched in conjunction with the establishment of ADB’s $10-billion Asian Currency Note Program.
The program is Asia’s first multi-currency platform since the Asian financial crisis that links the domestic capital markets in the region under a single unified framework with a common set of documents under English law.
"The Thai government has provided its in-principle approval for including Thailand in the Program in the near future," Pholsena added.
The bond issue underscores ADB’s confidence in the Thai capital market and will help to enhance liquidity in the cross-currency swap market, particularly as ADB plans to undertake currency swap transactions for asset and liability management purposes.
The bonds were structured into two tranches with five-and 10-year tenors, respectively, so as to capture a broad spectrum of investors. The issue attracted strong demand from investors.
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