thai-coup-leaves-krung-thai-bond-in-limbo

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 bonds, traded out almost immediately.

The new deal traded 30bp wider initially, but by the end of trading on Wednesday the bonds were quoted at a bidoffer spread of 300bp to 270bp over Treasuries...
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