Kasikornbank Raises $800M in Subordinated Bonds
Thailand's Kasikornbank successfully raised $800 million through subordinated bonds with a 10-year maturity and 6.278% coupon, attracting over $2.6 billion in orders from foreign institutional investors as the bank strengthens its capital s
Kasikornbank issued 800 million US dollars in subordinated bonds qualifying as tier-2 capital through its Hong Kong branch, with a 10-year maturity and 6.278% annual coupon after foreign institutional investors placed orders exceeding 2.6 billion dollars, demonstrating strong interest in the bank's capital management approach ahead of a prior bond redemption scheduled for October 2026.
On September 18, 2026, Chongrak Rattanpiya, Chief Executive Officer of Kasikornbank, announced that the bank issued the subordinated bonds to support efficient capital structure management in line with its business plan amid continuously evolving financial conditions. The bonds carry a 10-year term, 6.278% annual interest rate, and are callable after five years. The bank remains committed to maintaining adequate capital levels while managing financing costs disciplinedly to support business operations and sustain customer confidence.
The bonds issued by Kasikornbank's Hong Kong branch received a Ba1 credit rating from Moody's and are listed on the Singapore Exchange, with BNP Paribas, Citigroup, J.P. Morgan, and Standard Chartered Bank serving as joint lead managers.
The offering generated substantial interest from foreign institutional investors, with total orders reaching approximately 2.6 billion US dollars from both established and new institutional investors, including the Government Pension Fund, broadening the bank's foreign investor base. Geographically, more than 60 percent of allocations went to Asian investors, with the remainder distributed to investors from other regions including Europe. This successful issuance reflects strong international confidence in the bank and its disciplined capital management approach, supporting efficient capital structure management ahead of the October 2026 redemption of the prior tier-2 subordinated bond series.
