Bonds key to fund-raising plan
The government needs to find Bt740.12 billion to offset the projected budget deficit of Bt400 billion for fiscal 2012 and to restructure Bt340.12 billion of debts belonging to the Financial Institutions Development Fund.
The PDMO said after the meeting that the government had decided to issue Bt540 billion of state bonds with various maturities for next fiscal year to keep the local bond market sufficiently liquid.
The five-, seven- and 10-year series will be issued in quantities of Bt100 billion, Bt65 billion and Bt60 billion respectively.
The long-term bonds with terms of 15, 20 and 30 years will come in quantities of Bt35 billion, Bt35 billion and Bt20 billion respectively.
The floating-rate bonds that proved popular with investors this year will be repeated in six tranches of four-year maturity with amounts ranging from Bt8 billion to Bt11 billion each, bringing the total outstanding to Bt50 billion.
For inflation-linked bonds (ILB), the PDMO plans to launch a 10-year tranche after getting a good response from investors this year, sending the total of outstanding ILB bonds up to Bt100 billion.
Under the capital-market development plan, the PDMO and central bank will join to develop the three-year benchmark bond for fiscal 2012. The PDMO plans to issue six tranches of the three-year bonds throughout the year, taking the total to Bt100 billion.
The PDMO also plans to restructure FIDF's 10-year savings bonds worth Bt206.02 billion on a pre-funding basis for Bt154 billion and normal basis for the rest.
