Private bond issues to pass Bt350 billion
Play
The Thai Bond Market Association (ThaiBMA) expects the value of new bond issues to exceed Bt350 billion this year thanks to low interest rates.
The value of bonds issued by private companies totalled Bt231.88 billion from the beginning of this year to August 9.
Ariya Tiranaprakij, ThaiBMA’s executive vice president, said that this year, those expected to issue new bonds included manufacturing groups and the leasing, property, food, agricultural, automobile, communication and energy sectors.
If the Basel III requirements for bonds become clearer, commercial banks are expected to launch more.
“In the latter half of this year, interest rates will likely remain steady or go down. If the country’s economic growth becomes slower than expected, this will likely stimulate the launch of new bonds to lock in financing costs,” Ariya said.
This is a good year for the primary bond market with relatively many bond issues, while the secondary bond market may not be bullish on concerns over the possible tapering of the US monetary stimulus, she said.
With the US stimulus concerns, foreigners could slow down their investment, she said,
Ariya said 10 companies had already issued bonds this year. They are Syntec Construction, TPI Polene, Bangkok Mitsubishi UFJ Lease Co, ICBC (Thai) Leasing Co, Singer Leasing (Thailand) Co, Oishi Group, Bangkok Chain Hospital, Ananda Development, Areeya Property, and Major Development.
