International Financing Review Asia November 25 2017 43COUNTRY REPORT THAILANDtranche B pays 65bp over Taibor. There
is pre-tax interest rate floor set at 1.7%
for tranches A and B. Tranche C offers an
annual guarantee fee of 63bp. Banks were
offered a top level-upfront fee of 8bp. The
loan was signed on Tuesday.
Funds are for refinancing and working
capital purposes.
For full allocations, see http://www.ifrasia.com.THAILAND
DEBT CAPITAL MARKETS
› DEUTSCHE BANK SET FOR BT20BN BONDGermany’s DEUTSCHE BANK, rated Baa2/A–/
BBB+, plans to sell bonds to raise up to
Bt20bn (US$612m) in three tranches at
maturities of one to three years.
The German bank had initially hoped to
launch books in early December, but the
timeline looked tight for investors as they
required more time to work on the credit.
As such, bookbuilding could be pushed into
next year.
Bangkok Bank, Kasikornbank, Krungthai Bank
and Siam Commercial Bank are joint lead
managers on the offering.
Deutsche was the sole issuer to obtain
approval from Thailand’s Ministry of
Finance in early November to sell baht
bonds and take the proceeds out of the
kingdom under a special window opened
in late September. It has to sell the bonds
within a five-month period to March 13
2018.
A key condition under the special
window is that the German bank will have
to exchange the currency in the onshore US
dollar/Thai baht spot exchange market and
send the proceeds out of the country. Under
current regulations, foreign issuers cannot
take proceeds from bonds out of Thailand.
The special window was introduced in a
move to offset a rapidly appreciating baht.› AWN PRICES TO HEALTHY DEMANDADVANCED WIRELESS NETWORK priced last
Tuesday Bt9bn of 10-year bonds at 3.35%
amid healthy demand.
The bonds, with a Fitch rating of AA+,
drew an order book that was 1.72x covered,as life insurers piled in to pick up long-
duration assets to match their liability-
management portfolios.
Pricing came within the initial guidance
range of 3.23%–3.39%. The spread was fixed
at 86bp over Thai government bonds.
The good demand came on the back of
higher TGB yields, which had gone up to
around 2.50% on Monday from 2.46% two
weeks ago.
Although the issuer had to pay a slightly
higher coupon, it was pleased to be able to
compress the spread from its previous issue
for which it had paid 100bp.
Settlement will be on November 30.
Bangkok Bank, Bank of Ayudhya,
Kasikornbank, Krungthai Bank and Thanachart
Bank were joint lead managers and
underwriters.
The Thai mobile phone operator is part
of Advanced Info Service.› TOYOTA LEASING PLANS FIFTH ISSUETOYOTA LEASING THAILAND plans to raise up to
Bt5bn from the sale of its fifth batch of
bonds for the year.
Bangkok Bank, Bank of Ayudhya and
Kasikornbank will be joint lead managers and
underwriters on the offering, which will have
maturities of three, five and seven years.
The latest offering comes a month after
the automobile-leasing company sold a
Bt9.5bn triple-trancher, comprising four-
year notes priced at 2.02%, five-year notes
priced at 2.2% and seven-year notes priced
at 2.61%.
Bookbuilding is scheduled for late this
week for the issue, which has a targeted
size of Bt3bn and a greenshoe option of
Bt2bn.› FRASERS PLANS BAHT MAIDENFRASERS PROPERTY HOLDINGS THAILAND has hired
Bangkok Bank, CIMB Thai Bank and Standard
Chartered to manage jointly a maiden
offering of baht bonds next month.
The issuer, a unit of Singapore-based
property developer Frasers Centrepoint
(FCL), will sell the bonds off a newly
established Bt25bn debenture programme.
Bookbuilding is scheduled to begin in
early December on a date to be finalised
when investors obtain approvals for the
new credit.
FPHT aims to raise up to Bt5bn, including
a Bt2.5bn greenshoe option, from theseven-year bonds. The notes, with a
guarantee from the parent, have a AA–
rating from Tris.
Preliminary price indications have been
heard at 65bp–75bp over Thai government
bonds. Proceeds are expected to be used
for the Thai operations’ general corporate
requirements.
FCL is part of Thai conglomerate TCC
Holdings, which is a major shareholder
in Thai Beverage and Berli Jucker among
others.› BAY PRINTS YEAR'S SECOND T2SBANK OF AYUDHYA has issued Bt15bn of self-led
subordinated 10-year bonds, which will
qualify as Basel III-compliant Tier 2 capital.
The notes, with a Fitch rating of AA+,
will pay 3.4%. This is the Thai bank’s second
T2 issue this year, having sold Bt17bn of
10.5-year non-call 5.5 notes in May.
Bank of Ayudhya settled the latest issue
on November 17. Key terms include a non-
viability trigger for loss absorption with a
partial writedown. Fitch said there were
no going-concern loss-absorption features,
hence no additional notching for non-
performance risk.
The rating reflects BAY’s strategic
importance to parent Bank of Tokyo-
Mitsubishi.EQUITY CAPITAL MARKETS
› GULF ENERGY PRICES IPO AT TOPElectricity producer GULF ENERGY DEVELOPMENT
has raised Bt24bn (US$726m) from its IPO
on pricing the shares at the top end of the
Bt40–Bt45 price range.
The Thai company sold 533.3m new
shares in the kingdom’s largest IPO since
Jasmine Broadband Internet Infrastructure
Fund’s Bt37bn listing in 2015.
The Asian Development Bank and Affin
Hwang Asset Management had agreed to
buy 65.6m shares as cornerstone investors.
Up to 15 Thai investors bought 98.5m
shares as cornerstone investors.
The remaining shares were sold to
institutions and retail investors.
The shares start trading on the Stock
Exchange of Thailand on December 6.
Bank of America Merrill Lynch, Bualuang
Securities, Kasikorn Securities, Siam Commercial
Bank and UBS were leads on the IPO.1019_07 Country02.indd 43 24/11/2017 21:55:23