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In the first two months of this year, about 132 companies launched short- and long-term debt instruments, exceeding a target of 72 companies for the whole of 2015, the Thai Bond Market Association reported.

“We don’t want to set [new bond issues’] value as this year’s target. But we set the number of companies, instead. We want private companies to see debt instruments as an investment alternative” aside from borrowing from commercial banks, said Tada Phutthitada, ThaiBMA president.

In January and February, about 102 companies introduced short-term debt instruments worth a total of Bt121.6 billion, compared with 66 companies’ Bt232.3-billion issues in the same period of last year. Thirty companies launched long-term debt instruments worth Bt42.93 billion, compared with 21 firms’ Bt55.21-billion issues.

This year’s plan is to give tax privileges and relax rules for new bond issues on expectations that private companies will turn to mobilising funds through the bond market, Tada said.

smc seeks more capital

The Secondary Mortgage Corporation has asked the Finance Ministry to increase its capital of Bt1.5 billion to strengthen its capital base and gain investor confidence, aiming to purchase Bt10 billion worth of mortgages per year in fiscal years 2016-2018. SMC president Pornnipa Hachaiya-phum said the capital increase was planned for fiscal year 2016, while this year, the corporation had sufficient capital for its mortgage purchases.

SMC aims to buy Bt10 billion worth of mortgages this year, up from last year’s Bt8.57 billion. Net profit is estimated at Bt120 million. Last year its net profit was Bt70 million. Its has a total of Bt16.82 billion in assets.