Thai Thanachart bank sets 5 bln baht bond coupons

BANGKOK, April 28 (Reuters) - Thanachart Bank, 24.98 percent owned by Bank of Nova Scotia (BNS.TO: Quote, Profile, Research, Stock Buzz), has fixed coupon rates for its 5 billion baht ($158 million) of 7-year subordinated debentures, the bank said on Monday.

The coupon rate for the first three years would be 5.10 percent and 6.00 percent for the remaining years, the bank said in a statement.

The debt paper, rated "A" by Thailand's TRIS Rating, would be offered to institutional investors and private investors next week before being issued on May 9.

Benchmark seven-year government bonds were yielding 4.60 percent at 0242 GMT.

The proceeds of the debt paper, underwritten by Thanachart Securities, would be used to increase the bank's Tier 2 capital.

Thanachart bank, 74.92 percent owned by Thanachart Capital TCAP.BK, had a capital adequacy ratio of 12 percent at the end of 2007, representing 23 billion baht.

The debentures are part of a plan announced in 2006 to sell up to 10 billion baht of 7-year bonds to increase capital. ($1=31.70 Baht) (Reporting by Arada Therdthammakun; Editing by Darren Schuettler)