Bank of Ayudhya to issue 20 billion baht in bonds

Bank of Ayudhya (BAY) will float up to 20 billion baht worth of medium-term debentures by the end of next month.
Tak Bunnag, a BAY executive vice-president, said the new debentures would raise funds to finance loan growth by the bank.
BAY predicts a sharp pickup in project financing with the launch of the government's new infrastructure megaproject investments.
The debentures, with terms of two, three and four years, would be offered to institutional and retail investors. Coupon rates would be announced at the end of the month.
BAY in October gained 30 billion baht in capital through the issue of 15 billion baht worth of three-year bonds priced at 4.25% and another 15 billion in four-year bonds at 4.5%. Bond yields, however, have since fallen on market expectations that interest rates could turn downward.
Yaowalak Poolthong, a BAY spokeswoman, said the bank's net loan target this year was 39 billion baht, or 8.8% increase. This excludes asset growth from the acquisition of GE Capital Auto Lease, a hire-purchase company, a deal announced last year and expected to be completed by the end of the week