TOYOTA LEASING’S TENTH BOND ISSUE MEETS
STRONG DEMAND
Final coupon rate set at 3.32% for 2-year tranche and 3.50% for 3-year tranche
25 February 2008
Toyota Leasing (Thailand) Company Limited (TLT), the largest captive automotive leasing company in Thailand, has successfully completed the book building process for its tenth medium-term domestic Thai baht offering, becoming Thailand’s first corporate bond issue for 2008. The 2-year and 3-year bonds are the tenth issue of the company’s 30 billion baht Medium-Term Notes (MTN) program fully guaranteed by Toyota Motor Finance (Netherlands) B.V., a company rated AAA/Aaa by S&P and Moody’s respectively. Based on the guarantee, the MTN program was assigned a AAA rating by local credit rating agency, TRIS. Bangkok Bank Public Company Limited and Standard Chartered Bank (Thai) Pcl. are joint-bookrunners for this bond issue.
With an overwhelming demand from investors, the bond was oversubscribed by 1.9 times from the original issue size of THB 2,000 million. With the excess demand, the greenshoe was exercised with an additional amount of THB 1,800 million, making the final total issue size of THB 3,800 million. The coupon for the 2-year tranche was finally closed at 3.32% or equivalent to 30 basis points over the 2-year government benchmark. The coupon for the 3-year tranche was closed at 3.50% or equivalent to 35 basis points over the 3-year government benchmark.
Both Toyota Leasing (Thailand) Company Limited and Toyota Motor Finance (Netherlands) B.V. are subsidiaries of Toyota Financial Services Corporation, which is a wholly owned subsidiary of Toyota Motor Corporation, the group parent company.
With an overwhelming demand from investors, the bond was oversubscribed by 1.9 times from the original issue size of THB 2,000 million. With the excess demand, the greenshoe was exercised with an additional amount of THB 1,800 million, making the final total issue size of THB 3,800 million. The coupon for the 2-year tranche was finally closed at 3.32% or equivalent to 30 basis points over the 2-year government benchmark. The coupon for the 3-year tranche was closed at 3.50% or equivalent to 35 basis points over the 3-year government benchmark.
Both Toyota Leasing (Thailand) Company Limited and Toyota Motor Finance (Netherlands) B.V. are subsidiaries of Toyota Financial Services Corporation, which is a wholly owned subsidiary of Toyota Motor Corporation, the group parent company.