Industrial and Commercial Bank of China (Thai) Public Company Limited to issue Subordinated Debentures to be qualified as Tier 2 Capital                 this March, appointing Bangkok Bank PCL and Kasikorn Bank PCL as Joint-Lead Arrangers

    Under the support from ICBC Group, the world-leading financial group with the most number of branch in China and extensive worldwide network, Industrial and Commercial Bank of China (Thai) Public Company Limited (“ICBC (Thai)”) announces its plan to issue subordinated debentures to be qualified as Tier 2 Capital with maturities of 10 years 6 months, offering to institutional investors and high net worth investors. Bangkok Bank PCL and Kasikorn Bank PCL, two of the top financial institutions of Thailand, have been appointed to act as joint-lead arrangers of this deal.

    Dr. Zhigang Li, Chairman of ICBC (Thai)’s Board of Directors has revealed that ICBC (Thai) plans to issue subordinated debentures to be qualified as Tier 2 Capital No. 1/2018 maturing in 2028 (tenor of 10 years 6 months) this March. The debentures can be redeemed before maturity after 5 years after the issuance date or as specified in the Term and Conditions, and will be offered at Face Value of Baht 1,000 each. The minimum subscription amounts are Baht 100,000 with increments of Baht 10,000 for institutional investors and Baht 100,000 with increments of Baht 100,000 for high net worth investors. The coupon will be paid every 3 months throughout the life of the debentures. This offering is the first issuance of subordinated debentures to be qualified as Tier 2 Capital to be offered by ICBC (Thai) and will be underwritten by Bangkok Bank PCL and Kasikorn Bank PCL.

“The purpose for issuing these debentures is to increase the ICBC (Thai)’s capital in order to enhance its capital structure, increasing the lending limit in response to the bank’s expansion strategy, especially with regards to Thailand-China Business expansion. This is due to the fact that ICBC (Thai) has specialists who can provide swift and comprehensive services. Also, because ICBC (Thai) is a member of ICBC group which is the largest bank in China, ICBC (Thai)’s clients can benefit from services offered by the ICBC Group’s network, which includes the most branches in China along with worldwide network. ICBC has a long-term business strategy for Thailand.” Said Dr. Zhigang Li

For the latest 6-month financial performance of 2017, ICBC (Thai) has net profit of Baht 907 million, increased by 8.5% compared to the same period in 2016. As at 30th June 2017, ICBC (Thai) had total assets of Baht 202,303 million, increased by 8.7% from the end of 2016, and had NPL ratio of 1.37. For the financial performance in 2016, ICBC (Thai) has a net profit of Baht 1,470 Million. As at 31st December 2016, ICBC (Thai) had total assets of Baht 186,053 million, and had NPL ratio of 1.49. ICBC (Thai) continues to hold its credit rating of “AAA(tha)” for the fifth consecutive year, and the subordinated instrument to be qualified as Tier 2 Capital has been awarded rating of “AA+” by Fitch Ratings Thailand Limited.

The offered debentures are a name-registered subordinated and unsecured instrument to be qualified as Tier 2 capital with instrumentholders’ representatives. The debentures can be counted as Tier 2 capital in accordance to the Bank of Thailand’s regulation, and can absorb loss upon the occurrence of a Non-Viability Event. The notable features include ability to be written down (fully or partially) if government authority decides to grant financial assistance to ICBC (Thai). Currently, ICBC (Thai) is in the process of submitting the filing of documents and Prospectus to Securities and Exchange Commission Thailand (SEC).

Interested investors can to subscribe or enquire for more information via Bangkok Bank PCL at Tel. 1333, Kasikorn Bank PCL at Tel. 0-2888-8888 or ICBC (Thai) at Tel. 0-2629-5588. The allotment of the debentures to subscribers shall be at the absolute discretion of the Joint Lead Arrangers. Investors are advised to study the product characteristics including the returns, conditions and risks before deciding to invest.

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