The sovereign has hired Bangkok Bank, CIMB and HSBC as joint lead managers for what will be its first inflation-protected notes in more than two years. The issue will be denominated in Thai baht, as were the two previous deals.
In July 2011 Thailand became the first sovereign in Asia to issue a syndicated inflation-linked bond. The Bt40bn ($1.32bn) 10 year trade, issued by the Finance Ministry’s Public Debt Management Office, paid investors semi-annual coupons of 1.20% over the six month consumer price index.
South Korea and Japan had both sold inflation bonds before Thailand, but both used auctions. HSBC was the sole adviser and bookrunner for the Thailand's deal.
Less than two years later, the Kingdom made a comeback in March 2013 and successfully built the first inflation-linked curve for an Asian issuer. That Bt55bn 1.25% 15 year bond tracks the Bank of Thailand’s headline consumer price index, with a three month lag.
Bangkok Bank, Deutsche Bank, HSBC and Krung Thai Bank were bookrunners for the Baa1/A-/A- deal.