10 Issues Of Thai Government Bonds Collectively Worth Nearly THB300 Bln. To Join Thailand’s Bond Electronic Exchange Roster On Jun. 1

Executive Vice President of The Stock Exchange of Thailand (SET) Ms. Sopawadee Lertmanaschai, who also chairs the SET’s Bond Market Development Committee, said that the Bond Electronic Exchange (BEX) has significantly grown from its first launch on November 26, 2003. Initially there were 21 issues of corporate bonds from 6 listed companies worth a total of THB158.65 bln. Today the BEX has 42 issues of bonds from 16 listed companies worth THB203.03 bln. in total.

“The BEX will have an even brighter future, as it has extended the scope of its operations to serve institutional investors and dealers. Also, it welcomes all types of bonds for listing and trading, making it a secondary market for both public and corporate bonds. The BEX will thus be able to provide services more efficiently and comprehensively. This is in line with the 2nd stage of the Thai Bond Market Development Commission’s development plan chaired by the Finance Minister.

“The listing of 10 actively traded and liquid government bond issues, collectively worth nearly THB300 bln., on the BEX on June 1, 2005 will more than double the BEX’s total outstanding bond value, to nearly THB500 bln. Their listings mark an important step for the BEX. We’ll have more product variety to serve the needs of more investor groups and the BEX will play a more important role in the Thai financial sector and the economic system,” Ms. Sopawadee said.

The CEO of the BEX, Dr. Santi Kiranand, said that the SET Board of Governors has approved the listing of 10 government bonds on the BEX issued by the Ministry of Finance (MOF) worth a total of THB293.19 bln.. These bond issues will commence trading from June 1, 2005, onwards.

“The listing of these 10 government bond issues will, for the first time, enable retail investors to invest in government bonds directly and more conveniently. Henceforth there’ll be other types of government bonds, e.g. treasury, FIDF, state-owned enterprise, and savings bonds regularly listed on the BEX, providing more investment alternatives for investors.”

The listings of the government bonds will increase the total issues on the BEX from 42 to 52. They have an outstanding total value of THB496.22 bln.” Mr. Santi said.

The ten new government bond listings include the following:

1. TLOAN42/05/8Y with an 8 year maturity bears an 8% fixed interest rate. The issue size is THB35 mln. It will have “LB06DA” as its trading symbol.
2. TLOAN44/05/7Y with a 7 year maturity. The issue size is THB34.95 mln. It will have “LB082A” as its trading symbol.
3. TLOAN44/01/9Y with a 9 year maturity. The issue size is THB39.44 mln. It will have “LB104A” as its trading symbol.
4. TLOAN47/04/6Y with a 6 year maturity. The issue size is THB30 mln. It will have “LB108A” as its trading symbol.
5. TLOAN47/01/7Y with a 7 year maturity. The issue size is THB39.1 mln. It will have “LB11NA” as its trading symbol.
6. TLOAN48/04/7Y with a 7 year maturity. The issue size is THB18 mln. It will have “LB123A” as its trading symbol.
7. TLOAN42/06/15Y with a 15 year maturity. The issue size is THB40 mln. It will have “LB143A” as its trading symbol.
8. TLOAN48/02/10Y with a 10 year maturity. The issue size is THB15 mln. It will have “LB14DA” as its trading symbol.
9. TLOAN47/05/15Y with a 15 year maturity. The issue size is THB14.8 mln. It will have “LB198A” as its trading symbol.
10. TLOAN48/03/15Y with a 15 year maturity. The issue size is THB26.9 mln. It will have “LB19DA” as its trading symbol.

People interested in investing in bonds may trade them via any securities firm that is a SET member (broker), provided that it offers bond trading services. The minimum required trade is 100 units worth THB1,000 each, or THB100,000 in total. Clearing and settlement will take two days after the transaction date (T + 2).

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