Bangkok Dusit Medical Service’s (BDMS)
zero-coupon convertible bond has marked a number of firsts in
the Thai market. It also clarified local regulations for Thai
companies issuing internationally-sold convertible bonds.
The private hospital operator’s THB 10
billion ($311 million) offering, which closed on September 18,
was the first-ever zero-coupon convertible bond in the Thai
market. To account for currency risk, it was denominated in
baht but settled in US dollars.
Deal counsel had to work closely with local
regulators, who were unfamiliar with the product.
In Thailand the vast majority of bonds are plain vanilla,
according to Veeranuch Thammavaranucupt, partner at Weerawong
Chinnavat & Peangpanor, who advised the issuer on Thai law
matters. "It’s very rare that there are
convertible bonds, especially those in line with...