The issuance of baht-denominated bonds is part of an investment promotion and/or lending scheme to Thailand’s neighboring countries. Encouraged issuers of the baht-denominated bond should, either way, yield fruitful benefits for Thailand. These issuers will include international organizations, governments and government agencies in the ASEAN group plus 3 additional countries. The countries that will take part include Singapore, Malaysia, the Philippines, Vietnam, Indonesia, Brunei Darussalam, Cambodia, Myanmar, Laos, Japan, South Korea, and China.
The TSD, in conjunction with the issuers specifically the Asian Development Bank (ADB), the World Bank, and the International Finance Corporation (IFC), are currently discussing the registrar service contracts. The issue size will be about THB 3-5 billion each. The bonds will have a 5-year maturity and pay out their interest no more than twice a year. Investors in these “Baht Bonds” will be institutional investors and mutual funds. The Baht Bonds will be deposited in the TSD’s scripless system. Nevertheless, any bondholders can request a scrip issuance.
For the Baht Bond registrar, the TSD will essentially be responsible for:
- Keeping the bondholder registration book as well as keeping the book’s information updated e.g. securities transfers, detentions, pledgings, pledging revocations.
- Producing related reports for the issuers as well as reports required by the supervising organizations.
- Book-closing work, in order to calculate interests, issue checks, pay interest payments, and pay back the principals at maturity.
- Issuing the securities certificates to the bondholders when requested.
For the securities registrar services of the TSD, please browse www.tsd.co.th or call TSD Call Center at 0 2229 2888.
