Thai Military Bank completed an upsized $200 million hybrid tier 1 deal, Thailand's first, on Wednesday April 26 via Barclays Capital and DBS Bank. Having initially marketed the deal based on an issue size of around $175 million, the Ba2BB- rated transaction was increased to $200 million, the maximum limit established by the Bank of ThailandÆs guidelines governing hybrid tier 1 securities.
Based on a perpetual non-call 10 structure, the deal was priced at par on a coupon of 7.75% to yield 263.3bp over Treasuries or 213bp over swaps. The notes revert to a floating rate with a step up of 100bps if they are not called on the 10-year call date.
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