Kbank 'to stay no-1 in bonds'

Kasikornbank expects to remain the top player in the primary and secondary bond markets this year due to its experienced staff and superior services.

Senior vice president Thiti Tantikulanan, who oversees the bank's capital market business, said he was confident that this year KBank would be able to increase its share in the primary market to 20-25 per cent from 18.56 per cent last year. He also expects it to be the most active player in the secondary market. This is based on expectations that corporate bond issues this year will exceed Bt200 billion compared with Bt189 billion in 2007.

Many companies entered the market in the second half of last year to lock in borrowing costs before the key interest rate was raised to help cap inflation.

"In the first four months of

this year, our market share has already reached 30 per cent," Thiti said.

Last year, the bank gained four awards from nominations in six categories organised by the Thai Bond Market Association. These were - Top Underwriter; Dealer of the Year; Best Bond House; and Deal of the Year, which was co-awarded with Siam Commercial Bank and Barclay Capital Securities (Thailand).

"In the past it was unheard of that a bank would get three awards in the same year," Thiti said.

The success was a result of the bank's proficient teamwork and services, which met both issuers and investors requirements, he said, adding that as the underwriter the bank was able to satisfy the demands of both parties.

KBank's corporate bond underwriting totalled Bt35 billion last year, trailed closely by Siam Commercial Bank with Bt34.1

billion and Standard & Char-

tered Bank (Thai) with Bt22.3billion.

KBank is the only lender that has all aspects of bond issues handled by one department - the capital markets business group, whereas some of its rivals' procedures are handled by different departments.

 "With almost 20 people in our team, we are able to manage all the processes, ranging from establishing our customers' needs to recommending proper spreads and timing [of a bond issue], to researching demand and completing bond sales," Thiti said.

 The strong sales team separately takes care of institutional investors and high net worth retail investors and also cooperates with KBank branches to help ensure that they are able to provide the best possible services to retail investors nationwide, he said.