TMBThanachart to repurchase AT-1 debt instrument from overseas market, which is as part of its funding management plan, in the light of benefits to funding cost while capital level remains high.

Mr.Piti Tantakasem, CEO of TMBThanachart (ttb), mentioned "The repurchase of additional Tier 1 capital debt instruments or AT1-debt instruments has already been approved by the Bank of Thailand. This initiative is part of the Bank's funding strategy, back by the benefit to funding cost management. In this case, the benefit to Bank would come in the form of a decrease in interest expenses on debt issuing which would help enhance overall funding cost efficiency. Importantly, as TMBThanachart has always focused on maintaining robust capital position by generating quality growth to create sustainable operating performance, our current capital base stays at high level and does not have any significant impact from the repurchase of AT1 debt instrument.

As of the 3rd quarter 2022, TMBThanachart reported Capital Adequacy Ratio (CAR) and the Tier 1 Capital Ratio (Tier 1) of 20.0% and 16.0% which increased from 19.3% and 15.3% as of the 4th quarter 2021. Such a level is considered one of the top tiers among Thai banking industry and well-above the D-SIB's minimum ratios required by the Bank of Thailand of 12.0% and 9.5%, respectively."

In details, the period of the tender offer of the AT1-debt instruments namely, US$400,000,000 4.90 per cent. Perpetual Additional Tier 1 Capital Securities (listed on Singapore Exchange (SGX)) will be from 26th October 2022 to 3rd November 2022, with the repurchase value not exceeding US$120,000,000, representing 30% of the aggregate principal amount of the AT1-debt instruments outstanding in which, when combined with those previously repurchased in the overseas open market (Open Market Repurchase) of US$28,960,000 or 7.24% of total principal amount of the AT1-debt instruments outstanding, the total value of the repurchased AT1-debt instruments will not exceed US$ 150,000,000, representing 37.50% of the aggregate principal amount of the AT1-debt instruments outstanding.

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