KBank issues Bt22bn subordinated bonds
Kaksikornbank will raise upto Bt22 billion from 10-year subordinated bonds, the move that will boost the bank's tier-2 capital and maintain long-term funds at appropriate level.
Banthoon Lamsam, president and CEO of the bank, said that this issue is also a long-term investment alternative given that the coupon rate is relatively higher that government bonds with same maturity.
The subordinated bonds, to be available for subscription during Feb 6-14, offer the fixed rate of 4.50 per cent. The issue comes with a call option, allowing the bank to redeem the bonds before maturity. The bond is rated "AA-" by Tris Rating Co Ltd. Minimum investment is set at Bt100,000.
Higher capital base will support new lending. The bank on Tuesday announced the plan to grow loans by 9-11 per cent this year.
