Thai AEON plans 2 bln baht bonds next month

BANGKOK, July 23 (Reuters) - Thai retail finance firm AEON Thana Sinsap AEON.BK said on Wednesday it would sell bonds worth 2 billion baht ($60 million) in August to expand its loan book and refinance debt.

The bonds, divided into two tranches of two and four years in maturity, would be offered to institutional investors and cash-rich investors, a finance executive, Ikuo Nakamachi, told Reuters.

"We hope to start the selling process in the second week of next month," Nakamachi said.

The two-year tranche, worth 1 billion baht, would be guaranteed by Japan's Mizuho Corporate Bank, and another 1 billion baht of four-year bonds would be guaranteed by Mizuho and Japan Bank for International Cooperation (JBIC).

Benchmark two-year government bonds were yielding 4.46 percent in the secondary market at 0322 GMT, and four-year bonds were yielding 4.91 percent.

The bonds are underwritten by the Tisco Securities TISC.BK.

AEON, a unit of Japan's Aeon Credit Service (8570.T), operates credit card, leasing and personal loan businesses and competes with Krungthai Card KTC.BK and unlisted Easy Buy PCL.

At 0325 GMT, AEON shares were unchanged at 32 baht, while the overall stock market .SETI was up 1.64 percent. ($1=33.35 Baht) (Reporting by Arada Therdthammakun; Editing by Alan Raybould)