Such high oversubscription rate reflects international investors’ confidence in KBank.

It is the largest Southeast Asia Reg-S-Only Tier-2 note issue in more than five years, and also the first US$-denominated 12NC7 Basel-III Tier-2 tenor from Asia (excluding Japan) in nine years.

Predee Daochai, KBank President, said that KBank issued US$-denominated subordinated notes worth $800 million with a 12-year tenor which will be due in 2031 and can be called in at 7 years (12NC7), offering at a fixed rate of 3.343 per cent per annum.

The objective of the issuance was to support KBank’s foreign operations. KBank also aims to strengthen it funding position for suitable long-term funding cost.

The Notes were issued through KBank’s Hong Kong branch on October 2, 2019 and were rated Baa3 by Moody’s, BBB by Fitch Ratings, and listed on the Singapore Exchange (SGX).

The notes were offered to institutional investors and were fully subscribed quickly. Of the total investors, 81 per cent were in Asia and 19 per cent in Europe. Given the rarity of a Thai bank issuance, the Notes were deliverable to high quality investors, with 80 per cent being taken up by funds/asset management companies, with pensions/insurers and sovereign wealth funds buying up to 8 per cent.

Bank treasuries accounted for 3 per cent of the order-book, with the remaining 9 percent being taken up by other institution types. BNP Paribas, Citigroup, and Standard Chartered Bank acted as joint book-runners and joint lead managers.

The issuance of KBank subordinated notes met several objectives, For example, the total books reached $3.5 billion, representing 4.4 times of the value of the subordinated notes offered by KBank.

THAI president Sumeth Damrongchaitham said on October 4 that THAI has sufficient cash flow for present and future operations. He denied reports that THAI is in trouble and experiencing a liquidity shortage.

Sumeth added that the management has given top priority to maintaining liquidity and has drawn up a loans plan on the most prudential basis.

As of the end of June this year, THAI’s revolving credit line accounted for 13.4 per cent of the total projected revenue for the year. This indicated that the carrier still has adequate cash reserve in hand, he said.

He also assured customers, trading partners, shareholders, related parties and the general public that THAI is not in a liquidity crunch.

This week Deputy Transport Minister Thaworn Senniam said he will hold a meeting with THAI management on October 10 to seek ways to clear the national carrier’s accumulated losses.

The minister said the meeting will discuss THAI’s existing rehabilitation plan, which he does not believe will help the carrier succeed in a turnaround.

Thaworn said the rehabilitation plan had been implemented for a while now, but there was still no sign of the losses easing.

He believes THAI will first have to revise the rehabilitation plan within three months.

THAI directors on September 24 asked executives of the national carrier to review plans to procure 38 more aircraft worth a combined Bt156 billion.

The governing board instead cited a “fast-changing situation” in asking for a fresh plan within the next six months.

Recently Sumeth said that THAI operations will not be affected by its board’s demand for the review of plans to procure the new aircraft.

According to the THAI second-quarter 2019 filing to the Stock Exchange of Thailand, the airline and its subsidiaries had total revenue of Bt42.509 billion, a 10 per cent decrease year on year.

For the second quarter THAI and its subsidiaries had one-time expenses that included impairment loss of assets and aircraft in the amount of Bt172 million. The gain on foreign currency exchange was Bt522 million, mainly from balance sheet revaluation. Consequently, THAI and its subsidiaries reported the net loss of Bt6.878 billion, compared to the loss of Bt3.086 billion over the same period last year.

Related story: Thaworn to meet top THAI execs to discuss airline’s future

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The group’s performance is also expected to be better in 2020, he said on Thursday (October 3), adding that PTT has to watch the development of Brexit and how it impacts the global economy.

He added that though demands in other parts of the world might be affected, PTT still believes that the demand for oil and petrochemical products in Asia will remain high.

Chansin also said the group’s profit is expected to meet the target this year, though it may be lower than last year’s profit of Bt120 billion.

Also, he said, PTT’s three refinery plants – PTT Global Chemical PCL (PTTGC), IRPC and Thaioil – no longer need to be temporarily closed like they were in the first half of the year for maintenance and repair.

With Christmas, New Year and Chinese New Year holidays approaching, refinery plants have accelerated their refined-oil production, leading to a wider spread margin of cost and profits, he said. However, the margin spread for petrochemical products remains flat largely due to dropping crude oil prices and the adverse impact of trade war, he said.

Since PTT saw positive signs, its board on September 27 approved an interim dividend payment of Bt0.90 per share, which totalled Bt25.7 billion, Chansin said.

This year PTT has invested more than the target set by the government. For instance, the group acquired Glow Energy, which produces electricity for the manufacturing sector, he added.

Under the campaign, AIS is encouraging people to drop off their electronic waste such as broken earphones, AC adapters, Bluetooth devices, power banks and old mobile phones at e-waste bins in AIS shops or at all Central department stores. The bins are equipped with IoT (internet of things) technology to collect and dispose electronic waste.

Somchai Lertsuitwong, chief executive officer for AIS, said this campaign aims to cut one million units of carbon dioxide equivalent and eliminate at least 100,000 pieces of electronic waste by 2020.

“AIS is heading towards its 30th year of operation and we take pride in being part of Thailand’s history in the last three decades, especially in the continuous growth of the telecom industry contributing to a better quality of life among Thais nationwide,” Somchai said.

“Being No 1 in the telecom industry is due to our dedication to the pursuit of creating innovative products and services for the benefit of society and the country.”

Over the past 29 years, AIS has invested more than Bt1 trillion in building the foundation of Thailand’s digital infrastructure, he added.

AIS currently has some 42 million customers using its mobile phone or broadband services. It has also partnered with more than 1,918 leading brands, that have 27,155 branches nationwide.

AIS also held a show where its presenters took to the stage in Bangkok’s Siam Paragon shopping centre on Thursday to entertain customers.

He added that if the consortium failed to meet the deadline, it could be blacklisted. Partners in the consortium would also be affected accordingly when they bid for other state projects in the future.

Pertners in the CP-led consortium comprise Bangkok Expressway and Metro Plc, China Railway Construction Corporation, Ch Karnchang Plc, and Italian-Thai Development Plc.

The committee tasked with overseeing bidding for the high-speed train project, has set October 15 as deadline for the signing.

The CP-led consortium proposed the lowest bidding price. If it failed to seal the deal with the state agency  on that date, it might risk being considered as abandoning the project.

In the event of the signing being delayed, Anutin said, it could undermine the confidence of potential  investors in the Eastern Economic Corridor (EEC).

The railway project will connect the three international airports -Don Mueang airport in Bangkok, Suvarnabhumi airport in Samut Prakarn and U-Tapao airport in Rayong.

The EEC covers the three provinces of  Chachoengsao, Chonburi and Rayong.