IFR Asia - 13.10.2018

THAILAND

DEBT CAPITAL MARKETS

› SUSTAINABLE KASIKORNBANK

KASIKORNBANK, rated Baa1 by Moody’s,
became the first bank from Thailand to
issue a Sustainability bond when it raised
US$100m in five-year Formosa notes last
Monday.
The bond, which is Kasikornbank’s first
Formosa issue, was priced at 95bp over
three-month Libor and will be listed on the
Taipei and Singapore stock exchanges.
BNP Paribas was sole lead manager as well
as structuring adviser. Sustainalytics gave
second-party opinion on the Sustainability
bond framework under which the bond
was sold. Cathay United Bank, CTBC Bank and
KGI Securities were co-managers.
Proceeds will be used to fund both
green and social projects aligned with
International Capital Market Association

and ASEAN Capital Markets Forum

standards.

The Thai bank targeted the Formosa

market for the relatively small issue as

Taiwanese investors have shown strong

appetite for green assets.

In June this year, TMB Bank printed

a US$60m seven-year Green bond, the

first such note from a Thai financial

institution.

› CP FOODS PLANS A JUMBO

CHAROEN POKPHAND FOODS plans to sell a four-

tranche bond in early November to raise up

to Bt20bn (US$608m) in its second foray in

the baht bond market this year.

The Thai producer and distributor of

animal feed and consumer food items is

indicating tenors of two, six, 10 and 12

years and is targeting a minimum size of

Bt10bn with a Bt10bn greenshoe.

Government Savings Bank, Kasikornbank,

Krungthai Bank and SIAM COMMERCIAL BANK are

joint lead managers for the offering.

CP Foods sold Bt12bn of seven and 10-

year bonds at 3.05% and 3.60% in January.

› GRIMM BONDS ON OFFER

B GRIMM POWER was marketing four tranches

of bonds last Friday to raise Bt9bn.

A two-year tranche was offered in the

range of 2.71%–2.85%, a three-year tranche

at 2.98%–3.18%, a five-year tranche at

3.49%–3.67% and a 10-year tranche at

4.26%–4.46%.

Bangkok Bank, Kasikornbank, Phatra Securities

and Standard Chartered Bank are joint lead

managers and underwriters.

The Thai power holding company has

not been to the bond market since October

2016 when it sold Bt5.5bn of two and three-

year bonds.

› TOYOTA PRINTS TRIPLE TRANCHER

TOYOTA LEASING THAILAND last Thursday priced

three tranches of bonds in tenors of one to

three years.

A Bt1.8bn one-year one-month tranche

was priced at par to yield 2.12% with a

spread of 32bp over Thai government

bonds. A Bt2.8bn two-year piece will pay

2.44% with a spread of 44bp, and a Bt1.4bn

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