Docstoc

STRONG DEMAND FOR SECOND THAI BAHT BONDS FROM DIVERSE

Document Sample
STRONG DEMAND FOR SECOND THAI BAHT BONDS FROM DIVERSE Powered By Docstoc
					30 June 2009


        AGENCE FRANÇAISE DE DÉVELOPPEMENT
   STRONG DEMAND FOR SECOND THAI BAHT BONDS FROM
               DIVERSE INVESTOR BASE

The Agence Française de Développement (AFD or French Development Agency), a
public development-finance institution, announced the successful completion of its second
Thai Baht Bond issuance to investors in Thailand. HSBC has been entrusted to act as the
Sole Bookrunner and Sole Lead Manager of this transaction.


With the solid credit history of AFD - “AAA” credit rating by Standard & Poor’s and
Fitch Ratings, together with its continuous commitment of ongoing projects in Thai
financial community, the bonds were well received by various types of institutional
investors who are looking for high credit quality papers. The firm order book allowed
AFD to launch its bonds at THB 4.0 billion which is the maximum approval limit as
permitted by the Ministry of Finance of Thailand.


The bonds were divided into two tranches - 3-year THB 2.2 billion and 7-year THB 1.8
billion bonds. The coupons for the 3-year and 7-year tranches were determined at 3.40
per cent and 4.60 per cent per annum respectively, implying very tight spreads of 72 basis
points and 101 basis points over comparable government yields.


The transaction enabled AFD to achieve both desired issue size and target cost of
funding, while provided AFD opportunities to expand the investor base in Thai Baht
bond markets.


HSBC has been entrusted to act as the Sole Bookrunner and Sole Lead Manager of this
transaction after successful arrangement of AFD’s debut Thai Baht Bonds last year.

The success of the transaction demonstrated HSBC concrete relationship with the client
and further demonstrate HSBC’s strong franchise in emerging markets and its capacity to
manage and execute cross boarder transactions.



                                                                                 More…
Agence Française de Développement strong demand for Second Thai Baht Bonds
from Diverse Investor Base / Page 2


François-Xavier Duporge, Country Director , AFD Bangkok said: “It is AFD’s global funding
strategy to issue in the Thai bond market in order to diversify our sources of fund and also to
actively participate in the development of the local financial markets where AFD has
operations. That is why we are so pleased to be the first AAA-rated institution to issue here in
Bangkok this year. This return of AFD to the Thai bond market for the second time
demonstrates AFD’s strong commitment towards Thailand.”


Mr Willie Tham, Chief Executive Officer, HSBC Thailand said: “HSBC is very honoured to act
as the Sole Bookrunner for AFD's two consecutive THB bond issues. We are delighted that,
once again, there was overwhelming response from Thai investors amid the challenging
market conditions. The success of this second bond issuance reiterates investors' view that
AFD is indeed a highly rated world class institution. HSBC is proud to take a leading role in
this transaction where proceeds will be reinvested in Thailand for the Kingdom's further
economic development."


In Thailand, AFD together with PROPARCO, its subsidiary dedicated to the financing of
the private sector, aims at promoting sustainable economic growth and the protection of
three “Global Public Goods”: the fight against climate change; the preservation of
biodiversity and the fight against emerging and communicable diseases. AFD also aims
at providing support to local governments.


On climate change, AFD jointly developed with Government Housing Bank a program to
encourage the construction of more energy efficient buildings. AFD is also working on a
partnership with the Bangkok Metropolitan Administration (BMA) to support the
implementation of BMA’s Climate Change Action Plan adopted in 2008.




                                                                                   More…
Agence Française de Développement strong demand for Second Thai Baht Bonds
from Diverse Investor Base / Page 3



Regarding the protection of biodiversity, the French Global Environment Facility
(FFEM), which is represented here by AFD, launched jointly last year with the Thai
National Park, Wildlife and Plant Conservation Department and World Wildlife Fund
(WWF) the Strengthening Andaman Marine Protected Areas Network Program
(SAMPAN). The SAMPAN project is implementing a diverse array of projects which
focus on preserving the biodiversity of coral reefs in three marine parks in the Andaman
Sea (Surin, Similan and Lanta), while developing sustainable tourism. This operation is
funded through a one million Euro grant from FFEM, part of which has already been
disbursed.”
                                                 ends/more

Media enquiries to :

AFD                                        HSBC
                                           France
                                           Philippe Laroche                                Tel.+331-4070-2757
Thailand                                   Thailand
Francois-Xavier Duporge Tel: +662-663-6080 Prakob Phiencharoen                             Tel: +662-614-4869
                                           Salinla Seehapan                                Tel: +662-614-4608
                                           Hong Kong
                                           Annie Cheng                                     Tel: +852-2822-4938
                                           Maggie Cheung                                   Tel: +852-2822-4821

Notes to editors:

1. AFD in Thailand
AFD signed an Establishment Agreement with Thailand International Development Cooperation Agency
(TICA) on February 18th, 2006, which officially authorized AFD to operate in Thailand.
AFD is a public development-finance institution that has worked to fight poverty and support economic
growth in developing countries and the French Overseas Communities for more than 60 years. AFD
executes the French government’s development aid policies. AFD is active in over 50 countries and
finances and supports projects that improve people’s living conditions, promote economic growth and
protect the planet. AFD-funded projects provide schooling for children, support farmers and small
businesses, supply drinking water, preserve tropical forests and fight climate change, among other things.
AFD committed nearly €4.5 billion to financing aid activities in developing countries and the French
Overseas Communities in 2008, i.e; a 25% increase on the previous year.

2. HSBC in Thailand
HSBC was established as the first commercial bank in Thailand in 1888. With access to global expertise
and enriched local knowledge, HSBC in Thailand provides a full range of financial services including
corporate, commercial and institutional banking, global markets, securities services, trade and supply chain,
payment and cash management services to corporate customers; personal financial services and credit cards
to a growing retail customer base in Thailand. HSBC is globally recognised for its high service standards,
ethical practices and full commitment to corporate social responsibilities to benefit the local economy.

                                                    ends/all

				
DOCUMENT INFO