Innovation is key for Bangkok Bank

There are plenty of reasons why Bangkok Bank (BBL) won "Deal of the Year" for five straight years from the Thai Bond Market Association, plus other prizes from various organisers.

Among many reasons, an innovative working concept is likely one of the key factors for BBL's investment-banking group, led by senior vice president Surabhan Purnagupta, in lifting the trophies. This comes along with transparency and customer responsibility.

The bank builds up creative financial products for the bond market and encourages financial literacy among retail investors.

The bank won the prizes after it found a way for PTT to successfully sell corporate bonds worth Bt34 billion in 2003 and 2004 to retail investors instead of institutional investors due to a volatile market.

The performance not only satisfy PTT, which succeeded in its public offering and has since increased its retail-customer base, but also allowed retail investors to access products with informed details through the bank's branches.

The country's largest bank in terms of assets, however, did not cease its innovations. It was a financial adviser and underwriter for the securitisation of DAD SPV, a subsidiary of Dhanarak Asset Development, in 2005 and 2006.

That was the first time in the Kingdom that a state agency financed its debt with a securitisation by issuing debentures worth Bt24 billion.

They were backed by right of 30-year rents and sold to both retail and institutional investors.

"Securitisation is a complicated product for the retail investors, so we made a big effort to give an explanation and clarify them. We did it successfully and were proud that we provided them with basic literacy," said Surabhan. Last year, the bank was a co-underwriter for PTT Exploration and Production, which for the first time sold bonds to retail investors. This earned the bank its reward again.

The success could not occur without watertight working ideas.

Surabhan said the bank provided fairness and transparency on information disclosures for related parties, no matter whether they were issuers or investors.

A good understanding about regulations and customers' needs should also be obtained.

Amid fierce competition, the bank did not discontinue the development but gradually ensured a positive effect. It aims to be one of the first choices in investment banking for customers. It also wants to improve its quality of service, including product delivery. "We want to raise volume and build a good image for the long term. We want to use buzz marketing where customers will tell their friends to use our services. We strive to climb from our current fourth ranking," said Surabhan.

The target, however, should be achieved using good analyses and strategies.

Surabhan said the country's bond market could grow further but needed more support from authorities to boost both demand and supply.

He suggested authorities encourage foreign investors to jump into the market, which would help increase different investment views and encourage higher transactions.