Krung Thai Bank withdraws new perpetual securities in wake of Thailand coup

By Paul A. Harris

St. Louis, Sept. 21 - Krung Thai Bank withdrew $200 million of 7.462% perpetual securities that it priced on Tuesday following volatility in the trading prices of Thailand assets after the bloodless coup that toppled prime minister Thaksin Shinawatra earlier this week, according to market sources.

A trader who focuses on Asian fixed-income securities told Prospect News that the withdrawal entails a complete unwinding of a substantial number of trades in the hybrid securities.

The deal was priced the same day that Thailand's military removed Shinawatra from office.

Merrill Lynch & Co. led the sale of the securities, which were rated Ba1 by Moody's Investors Service, BB+ by Standard & Poor's and BBB- by Fitch Ratings.

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