This is Nam Ngum 2’s second issue in
Thailand’s bond market, having sold Bt6bn
of notes at tenors of three, seven and 10
years in September.
Bangkok Bank, Krungthai Bank and Siam
Commercial Bank reprised their roles as joint
lead managers and underwriters.
The company, majority-owned by leading
Thai construction company Ch Karnchang,
Thai state-backed Ratchaburi Electricity
Generating Holding and Laotian state-
owned EDL-Generation, operates a 615MW
hydropower plant in Laos.
› KIATNAKIN RETURNS FOR SECONDS
KIATNAKIN BANK, with a A– Tris rating, sold
a Bt3bn two-year bond priced at 1.72%
through sole lead Phatra Securities.
Institutional and high-net-worth
investors were invited to subscribe to the
notes on March 16–19.
The new bonds pay 8bp less than two-year
notes priced at 1.8% over a month ago. The
lower pricing reflects an increase in demand,
as well as a slight drop in benchmark rates.
The yield on the two-year Thai government
bond was at 1.38% on March 9, down 2bp
from 1.4% on February 9.
Kiatnakin Bank is part of the Kiatnakin-
Phatra Financial Group. The group also
owns lead Phatra Securities.
› ICBC THAI PRINTS MAIDEN T2
INDUSTRIAL AND COMMERCIAL BANK OF CHINA (THAI)
last Friday issued debut Bt5bn Basel III-
compliant Tier 2 notes at 3.5%.
The 10.5-year non-call five subordinated
bonds were sold mainly to high-net-worth
investors. Fitch rated the notes a local
AA+ to reflect an implicit strong support
from parent Industrial and Commercial
Bank of China. The Thai unit is locally
rated AAA.
There will be a non-viability trigger if
emergency capital assistance from the
central bank or another empowered
government agency is given. There is no
mandatory full write-down feature.
Bangkok Bank and Kasikornbank were joint
lead managers on the trade.› WHA REIT MARKETS BONDSWHA PREMIUM GROWTH FREEHOLD AND LEASEHOLD
REIT last Friday was marketing bonds with
maturities of three and seven years to raise
up to Bt4.2bn.
The three-year tranche was offered at a
range of 2.08%–2.28% or a spread of 50bp–
70bp over Thai government bonds, and the
seven-year tranche was marketed at a range
of 3.19%–3.39%, or 105bp–125bp.
Kasikornbank and Phatra Securities are joint
lead managers and underwriters on the
issue, which Tris rates A.
The shareholders of the Thai REIT
include the government-owned Social
Security Office, property company
WHA and other government agencies,
including Government Pension Fund and
Government Savings Bank.
Settlement is scheduled for March 30.
Proceeds will be used to repay existing
bank loans.SYNDICATED LOANS
› SOLID DEBUT FOR CP GROUP UNITCPF Investment, a wholly owned
subsidiary of CHAROEN POKPHAND FOODS, has
raised a five-year loan of US$1bn in an
impressive debut, attracting 24 lenders in
general syndication.
Kasikornbank and Mizuho Bank were
mandated lead arrangers and bookrunners
on the loan, launched at US$350m last
September.
The amortising loan offers an interest
margin of 250bp over Libor and has an
average life of 3.5 years.
Banks were invited to join as lead
arrangers with US$30m or more for a
top-level all-in pricing of 257.14bp, via a
management fee of 25bp, or as arrangers
with US$15m–$29m for an all-in of
254.29bp, via a 15bp fee.
Signing and drawdown took place on
February 28 and March 9, respectively.
The parent, CP Foods, issued a letter of
undertaking to support all repayments
from CPF Investment, based in the British
Virgin Islands.
Funds will be used to refinance
debt and/or invest in the agriculture
business.
CP Foods, through Hong Kong-listed
investment holding company CP Pokphand,
raised a US$600m five-year term loan in
June 2016. Kasikornbank and Rabobank
Hong Kong were MLABs on the syndicated
loan, used for refinancing and working
capital.MAKE THE MOST OF
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