Kasikornbank Public Company Limited (KBANK) has announced that regarding the issuance and offering of financial instruments intended to qualify as additional tier 1 capital of KBANK namely “U.S. $500,000,000 Additional Tier 1 Subordinated Notes” (the Instruments) under the U.S. $2,500,000,000 Euro Medium Term Note Programme of KBANK on October 14, 2020.
The objective of the issuance is to support KBANK’s future business expansion which is in line with its strategies. Furthermore, the current market condition provided a market window for KBANK to adjust its capital structure to the appropriate level. In this regard, KBANK’s capital fund will remain secure and sufficient for KBANK’s continuous business operation.
Acting through its Hong Kong branch, KBANK issued subordinated financial instruments without a representative of the noteholders for overseas institutional investors with no fixed redemption date and a fixed distribution rate of 5.275 percent per annum, payable semi-annually, which resets every five years.
KBANK stated that it may redeem the Instruments on October 14, 2025 (First Call Date) and every Distribution Payment Date thereafter, subject to the Bank of Thailand’s approval.
The Instruments received a credit rating of Baa1 by Moody’s.