Kasikornbank launches $800 million U.S. dollar Tier 2 bond sale
Thai bank Kasikornbank has begun selling $800 million in subordinated bonds maturing in 2036, with yields 17 basis points above U.S. Treasuries.
Kasikornbank, a major Thai commercial institution, has initiated an issuance of $800 million in Tier 2 subordinated bonds. This capital instrument allows the bank to absorb losses if it enters financial distress. The proceeds will fund general corporate purposes rather than specific projects. BNP Paribas, Citigroup, JPMorgan, and Standard Chartered Bank serve as joint lead managers and bookrunners for this offering. The bonds carry a 10-year maturity period, though Kasikornbank retains the option to repay early after five years pending regulatory approval. The official due date is September 17, 2036. Investors are pricing these securities at 173 basis points over U.S. Treasury rates, which represents a tighter spread than the initial guidance of approximately 205 basis points found in the term sheet. Kasikornbank holds a Moody's rating of Baa1, while S&P and Fitch rate it at BBB. Moody's anticipates a Ba1 creditworthiness score for the bond itself. The issuance was confirmed via an updated term sheet released on Tuesday.
