The Thai bank has contested the leading position of Kiatnakin Phatra Securities, CIMB Thai Bank and Siam Commercial Bank in the domestic market during the first half of 2021.
The fourth largest bank in Thailand by assets has unexpectedly taken the lead in the domestic league table in H1 21 after closing seven USD/THB-linked trades totaling THB24 billion (US$748m), SRP data shows.
With a tenor of one to seven years, the autocallable fixed coupon notes (FCNs) which struck on 8 March, offer a quarterly coupon of 0.65% to 1.05% pa - six of the notes sold US$119.1m each while one sold US$32.9m, according to the 1H 21 financial statement of Krungthai Bank (KTB).
These products were the only ‘long structured debentures’- defined as autocallable notes, with a tenor longer than 270 days by Thai regulation, issued by KTB in H1 21.
Long structured debentures amassed a total volume of THB24.6 billion at the state-owned bank chaired by Krisada Chinavicharana (pictured) in H1 21, which translated into a market share of 46.4%, SRP data shows.
FX rates are not commonly used as underlying assets in the Thai structured product market due to the relative inactive FX market in Thailand. The entire market only saw 99 structured notes issued tracking the performance of USD/THB from January 2020 to June 2021, SRP data shows.
In addition, KTB on 16 June sold THB726m in fully principal-protected notes with a knockout option tracking the Solactive Luxury Dynamic Factors 10% Daily Risk Control TR Index. The products comprised 726,000 units of THB1000 each with a five-year tenor, offering no fixed coupon.
Exclusively licensed to HSBC, the custom index has been made available for investment through structured notes or deposits in Malaysia, Hong Kong SAR and China, as SRP reported.
When it comes to 'short-term structured debentures', the bank issued 48 FCNs at US$20m tracking a total of 16 Thai single shares in H1 21, including Bangkok Expressway & Metro, Siam Commercial Bank and Airports of Thailand. The notes offered a coupon of 1.75% pa with a tenor of 30 days to 180 days.
It is the first time KTB has entered the country’s top three issuer ranking in the structured note market which was historically dominated by Kiatnakin Phatra Securities, CIMB Thai Bank and Siam Commercial Bank.
In 2020, the Bangkok-listed bank launched 28 notes worth THB508.5m-equivalent with an investment period of 15 to 180 days, according to SRP data.