Thai coup leaves Krung Thai bond in limbo

Pricing only hours before the military coup, Krung Thai's tier-1 bond finds itself in an unprecedented position.

In life, timing is everything, and unfortunately for Krung Thai Bank the timing of its $200 million perpetual non-call 10 tier-1 offering this week couldn't have been worse.

The deal, led by sole bookrunner Merrill Lynch, priced on Tuesday night at par with a coupon of 7.462%, a spread of 260bp over comparable US Treasuries or 210bp over mid-swaps. But hours later when Prime Minister Thaksin Shinawatra was ousted in a bloodless coup d'etat, the deal, along with other Asian...

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