Mitihoon – Sumitomo Mitsui Trust Bank (Thai) Public Company Limited (SMTBT or the Bank) has successfully completed its inaugural Thai baht bond issuance in Thailand, with a total offering size of THB 2 billion. Offered to institutional investors in Thailand, the transaction received strong demand from a broad range of institutional investors, including mutual funds, insurance companies, and commercial banks, reflecting confidence in SMTBT’s financial strength and credit profile.
The issuance was structured into two tranches:
- A 2-year bond with a fixed interest rate of 1.54% per annum; and
- A 1 year, 11 months and 27 days bond with a discount rate of 1.52% per annum.
The successful issuance marks an important milestone for SMTBT in accessing Thailand’s domestic debt capital market and further diversifying its funding sources.
SMTBT plays an important strategic role within Sumitomo Mitsui Trust Group (SMTG, Fitch rating A-, Outlook Stable) as the Group’s commercial banking platform in Thailand. Established in 2015, the Bank was set up to support the expansion of the Group’s business network in Thailand and to provide financial services to both Japanese and local corporate clients, including those connected to regional and international business networks.
As a subsidiary of Sumitomo Mitsui Trust Bank, Limited (SMTB, Fitch rating A-, Outlook Stable), SMTBT benefits from close integration with its parent bank in areas including governance, risk management, operations and access to the Group’s global expertise and network. This enables SMTBT to leverage the broader strengths of SMTG in supporting clients in Thailand with financing and other financial solutions.
Mr. Kenichi Satoh, Chief Executive Officer, SMTBT, said: This successful issuance represents a significant milestone for SMTBT as we access Thailand’s domestic bond market for the first time and further diversify our funding base. The bonds have been assigned a AAA(tha) credit rating from Fitch Ratings (Thailand), reflecting the Bank’s strong financial position and support from our parent bank. We believe this transaction also contributes to the Thai bond market by increasing the supply of high-quality debt instruments for domestic institutional investors. We would like to express gratitude to all investors for their support in SMTBT’s first debenture issuance
Mr. Ronnarit Virachanang, Head of Debt and ESG Capital Markets, KASIKORNBANK, acting as the sole arranger, said: We are honored to support SMTBT on its inaugural Thai baht bond issuance in Thailand. The strong reception from institutional investors reflects confidence in SMTBT’s credit quality and highlights continued demand for high-quality debt instruments in Thailand’s bond market. We believe this transaction will further contribute to the continued development of Thailand’s domestic debt capital market.
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