Bonds

Thailand Planning $1.6bn Bond Issue to Plug Deficit

 

Thailand plans to issue 55 billion baht ($1.61 billion) of government savings bonds this month to help finance a budget deficit, a Finance ministry official said.

The bonds will go on offer between June 13 and June 30 and will be the last batch of a record 165 billion baht issue planned for the current fiscal year ending September, up 33% from the previous year.

Five-year and 10-year bonds will be offered to the public with yearly average coupons of 2.9% and 3.6%, respectively, said Patricia Mongkhonvanit, head of the ministry’s public debt management office (PDMO).

Last month, the government approved the overall borrowing of 1.4 trillion baht for the 2022 fiscal year. For the 2023 fiscal year starting in October, total borrowing should be lower as there would be no special borrowing for pandemic response measures, Mongkhonvanit said.

 

 

Thailand Public Debt

Thailand’s overall public debt carries an average interest rate of 2.3% per year, she said.

With interest rates on an upward trend, the PDMO has largely shifted to fixed-interest rate borrowing from floating ones.

Thailand’s economy expanded 2.2% in the first quarter from a year earlier, its National Economic and Social Development Council said, as the kingdom lagged behind its Association of Southeast Asian Nations peers.

“A revival is seen in tourism and services exports but is still a long way to full recovery,” Chua Han Teng, economist at DBS Group Research, said.

 

  • Reuters, with additional editing by George Russell

 

 

READ MORE:

Tesla Preparing to Sell EVs, Solar in Thailand – Electrek

ADDX Raises $58m, Teams Up With Thai Stock Exchange

ThaiBev Seeks More Modest Fundraising From Singapore IPO

 

George Russell

George Russell is a freelance writer and editor based in Hong Kong who has lived in Asia since 1996. His work has been published in the Financial Times, The Wall Street Journal, Bloomberg, New York Post, Variety, Forbes and the South China Morning Post.

Recent Posts

Tata Launches Budget $10k EV in Bid to Extend India Dominance

Tata leads India's EV market, helped by government subsidies and high tariffs on imports, but…

12 hours ago

Canberra Says Optus Should Pay for New Passports After Hack

Australian minister says Optus should replace passports for victims of a massive data breach, which…

13 hours ago

Investors Dump China Property Shares, Bonds as CIFI Defaults

CIFI's shares plunged over 32%. Investors were shaken by the sector crisis reaching CIFI, one…

16 hours ago

Meta Removes China Propaganda Aimed at US Midterms

Meta said it disrupted a China-based influence operation using Facebook and Instagram accounts with political…

16 hours ago

Asia Shares Slump as Fears of Global Recession Rise

Trading boards in Tokyo, Hong Kong and Shanghai were a sea of red again with…

16 hours ago

Toyota Teams up With BYD To Sell Electric Sedans in China

The bZ3 sedan will be the second model of Toyota's "Beyond Zero" collection," powered by…

17 hours ago