By Marisa Wong
Madison, Wis., July 7 – CIMB Thai Bank PCL, a 93.7% owned subsidiary of Malaysia’s CIMB Bank Bhd., said it issued RM 400 million of Basel 3-compliant tier 2 subordinated debt on Monday.
The subordinated debt was priced to yield 5.6%, or six-month Libor plus 230 basis points after swapping ringgit to dollars.
The 10-year debt is callable at the end of year five.
The tier 2 securities were issued under the bank’s RM 2 billion tier 2 subordinated debt program.
CIMB Investment Bank Bhd. acted as the lead arranger and lead manager.
Proceeds will be used for working capital and general banking purposes.
Insurance companies comprised 25% of the investors, assets managers made up 39% of the participants, private banking accounts made up 33%, and banks represented 3%.
“Despite this being the first Basel 3 compliant sub debt issuance in the Malaysian market by a foreign bank amidst the challenging market back drop, we are very pleased with the results of the size and price that we achieved for this transaction,” Khun Subhak Siwaraksa, president and chief executive officer of CIMB Thai, commented in a company announcement.
“This successful transaction is also a testimonial to the depth of the [ringgit] bond markets, and also evidence of the confidence that investors have in CIMB Thai and Thailand, despite the current political situation,” added Khun Subhak.
CIMB Bank is a 99.99% owned subsidiary of CIMB Group Holdings Bhd. The CIMB banking group is based in Kuala Lumpur. CIMB Thai is based in Bangkok.
| Issuer: | CIMB Thai Bank PCL
|
| Issue: | Basel 3-compliant tier 2 subordinated debt
|
| Amount: | RM 400 million
|
| Maturity: | 10 years
|
| Yield: | 5.6%
|
| Call option: | At end of year five
|
| Manager: | CIMB Investment Bank Bhd.
|
| Settlement date: | July 7
|
| Rating: | RAM Rating Services: AA3
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
