BAY pleased with overwhelming response to debenture offer, faith in BAY’s capability and strength, and Thai economy
Bangkok – 9 June 2010 – Bank of Ayudhya Public Company Limited is pleased with the overwhelming response by investors to its subordinated debentures, reflecting the faith in the Bank’s stability and performance, as well as continued confidence in the domestic economy.
Mr. Mark Arnold, President and Chief Executive Officer, said the Bank’s recent offer (No. 1/2010) of subordinated debentures to institutional investors and the general public, worth THB 12,000 million, between June 7 and 22 this year had proved extremely popular, with all of the THB12,000 million allocation sold in the first 48 hours. Therefore, to meet the enthusiastic demand shown by investors, the Bank had decided to offer its greenshoe portion worth THB 8,000 million.
“We’re delighted with the favorable response to the subordinated debenture, with the first allocation of THB 12,000 million being taken so quickly. This demonstrates tremendous faith in BAY and the domestic economy,” Mr. Arnold said.
Debenture offer No. 1/2010 was an effort to secure long-term capital to sustain growth in the Bank’s credit business catering to corporate, SME, and consumers, as well as to foster the Bank’s Tier-2 capital.
The Bank offers an annual fixed return at 4.35% for the first three years, 4.75% from the fourth to the sixth year, and a fixed rate of 5.50 % for the remaining four years, with quarterly interest payment. The debentures have received an A+ rating from TRIS Rating Company Limited and Fitch Ratings (Thailand) Limited.
As of 31 March 2010, on a consolidated basis, the Bank’s BIS ratio stood at 14.5% with Tier-2 capital of 2.75%.
ABOUT BANK OF AYUDHYA PUBLIC COMPANY LIMITED
Bank of Ayudhya Public Company Limited [symbol in SET: BAY], established on January 27, 1945, is the fifth largest commercial bank in Thailand with total assets of Baht 822 billion. BAY provides a full range of banking services to both its commercial and individual customers through 580 branches nationwide. On 3 January 2007, BAY and GE Money, a premiere global consumer financial services firm, successfully became strategic partners. GE Money and the Ratanarak Group are now major shareholders with 33% and 25% stakes in BAY, respectively. For more information, please visit Bank of Ayudhya website,
www.krungsri.com