Thai Military Bank prices hybrid wide of initial guidance

Thai Military Bank prices Thailand's first ever hybrid tier 1 deal in an effort to lower its cost of capital.
April 27, 2006
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.

However...
¬ Haymarket Media Limited. All rights reserved.

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team subscription (2-5 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team subscription (2-5 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222