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TRADE FINANCE | Cesar Tordesillas, Thailand

SCB prepares to expand, okays $3.2M more in bonds

Siam Commercial Bank is preparing for massive fund flows for business expansion both locally and overseas.


In line with the bank's goal of greater growth in several markets, SCB approved issuing another 100 billion baht or US$3.22 million in bonds in addition to an approval for 150 billion baht.

This was revealed by the chairman of the executive committee Vichit Surapongchai.

The total of 250 billion baht worth of debentures will enable expansion in all areas comprising retail finance, small and medium-sized enterprise business, and the corporate banking segment.

Overseas banking business will also be a focus, especially in Asean with the integration planned for the Asean Economic Community in 2015.

Dr Vichit said the bank will raise funds from several sources, as liquidity will be managed to match each type of loan product. Deposits will be used for short-term loans, while debentures are prepared for longer-term lending.

The bank has a solid Bank for International Settlements ratio of 14.5%.

Last month the bank raised 20 billion baht worth of 10-year subordinated debentures with a coupon rate of 4.5% per year, payable every three months. The issue comes with a call option and the product will add to its tier-two capital base.

He said the bank kept its loan growth target this year at 12-14% despite expecting to book healthy growth for the first quarter. Business recovery after the floods and strong economic momentum are the factors driving its loan expansion.

"Despite positive economic trends several risk factors remain which is why we tempered our loan goal," said Dr Vichit.

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