Ms. Patareeya Benjapolchai, Executive Vice President, of The Stock Exchange of Thailand (SET), revealed that the SET’s Board of Governors resolved on May 26, 2004 to approve the Bond Exchange development plan to encourage more diversity of bonds in the Thai exchange and to increase the country’s competitive edge in international markets. The board also approved the cross-listing of bonds between the SET and other Asian exchanges, starting with Asian Bonds, which is in accordance with the Thai government’s policy to develop the region’s bond markets. Debt instruments issued under this project may be in either baht or other currencies used by Asian issuers.
In this regard, the SET board also appointed 9 professionals from both the state and private sectors as members of the SET Bond Exchange development sub-committee. They are Ms. Sopawadee Lertmanaschai, Mr. Pracha Brahmavira, Mr.Rachan Chawla, Ms. Niratchara Siriamphunkul, ML.Kornkasiwat Kasemsri, Mr. Kengkla Ruckphoupan, Mr. Chokchai Tanpoonsinthana, Ms. Nongram Wongwanich, and Dr. Santi Kiranand. In addition, Dr. Olarn Chaipravat will advise the committee, which is charged with setting up the Bond Exchange’s initial stages. All committee tenures end in 2005.
In order to promote more diversity of debt instruments, the SET board also resolved to accept debt instruments issued by the Thai government, state agencies, state enterprises, international organizations, foreign governments, SET-listed companies and non-listed private companies as well. The SET will waive registration fee for the listing of debt instruments issued by the Thai government, state agencies and state enterprises. The listing fees for debt instruments issued by international organizations, foreign governments, SET- listed companies and non-listed private companies will be waived until December 2005, according to the SET board’s resolution in April 2004.
The SET Executive Vice President said the board also considered the request of Rattana Real Estate Pcl (RR) to review its delisting of the company’s shares from the SET and concluded to list RR in REHABCO.
The SET board delisted RR shares from trading since December 26, 2003 because it had posted negative shareholders’ equity and carried non-performing assets and business units. But later the board reviewed the company’s request to cancel its delisting order, and considered the appeal committee’s recommendations on this issue. Therefore, the board decided to order the company to completely follow the regulations related to debt settlement and registration of its lease. RR has now reported that it has already raised more capital to settle its debts and has completed its lease registration.
Ms. Patareeya said “The SET board has reviewed the company’s information and decided that its capital raising resulted in positive shareholders’ equity, while leasing space in the Pratunam Centre project for running its own business will bring in more income. Moreover, RR has successfully shown its determination to abide by all rules and conditions, and has made progress. Therefore, the SET board agreed to re-list RR to the SET in the REHABCO sector from May 27, 2004 onwards. The “SP” sign will be put up until the company can successfully rehabilitate its operations and can eliminate the causes of delisting.”
