Thai Air to sell bonds delayed by downgrade -funds

BANGKOK, Sept 3 (Reuters) - Thai Airways (THAI.BK) wants to sell bonds worth 7 billion baht ($204 million) this month after delaying an issue in August following a ratings downgrade, fund managers said on Wednesday.

However, two bank officials from the issue's underwriters said the timing was still uncertain and depended on the political situation. A state of emergency was imposed in Bangkok on Tuesday.

Bank of Ayudhya BAY.BK, TMB Bank TMB.BK, Tisco Securities and BT Securities are the underwriters.

The national carrier had previously announced it wanted to raise up to 9 billion baht, but it held back after Thailand's TRIS Rating downgraded its rating in July, citing a weakening financial profile due to soaring fuel prices.

The bonds would be divided into two tranches with a three-year bond worth 3 billion baht and a five-year bond worth 4 billion baht, and they would be offered to institutional and retail investors, the fund managers said.

"The coupons on the issue will be decided through a bookbuilding process on September 16," one of the fund managers close to the deal said.

The issue is part of a plan to raise 60 billion baht through baht-denominated bond issues and loans during 2005-2010. A 7.5 billion baht bond issue was sold last year.

Thai Air shares rose 4.4 percent on Tuesday to 14.30 baht, helped by bargain-hunting late in the day and a drop in fuel prices. The shares edged up 0.7 percent to 14.40 at 0340 GMT on Wednesday, when the main stock index .SETI was down 0.3 percent. ($1=34.29 Baht) (Reporting by Arada Therdthammakun; Editing by Alan Raybould)