Thai High-Yield Bonds Face Pressure as Economy Stagnates
Maturing corporate debt hits 218bn baht in Q4, with ThaiBMA warning high-risk issuers will seek urgent debt extensions
- A significant 218.77 billion baht in Thai corporate bonds is set to mature in the fourth quarter, with the high-yield segment (24.38 billion baht) facing the greatest pressure.
- Thailand's stagnant economy is causing liquidity problems for high-risk companies, making it difficult for them to refinance their maturing debt and increasing the risk of default or payment extensions.
- As evidence of the financial strain, at least five listed companies have already scheduled meetings with bondholders to request debt extensions or restructuring.
- The Thai Bond Market Association has emphasized that government policies to stimulate the economy are crucial to reduce the growing risks for high-yield bond issuers.
The Thai corporate bond market is entering a period of significant risk in the final quarter of the year, with a massive 218.77 billion baht in long-term private debt due to mature.
The Thai Bond Market Association (ThaiBMA) has raised serious concerns that the ongoing economic slowdown will force a spike in requests for debt extensions and possible defaults among high-risk issuers.
The total value of maturing corporate bonds in the fourth quarter of 2568 (2025) is up from the third quarter’s 195.26 billion baht, bringing the total for the year to 867.98 billion baht.
The primary concern is the High-Yield bond group—those rated below BBB- or unrated—which accounts for 24.38 billion baht, representing over 11% of the Q4 maturities.
According to ThaiBMA, this group is highly vulnerable to seeking payment postponements or outright default due to the lack of a clear economic recovery in Thailand.
The stagnant economy is causing liquidity problems for many companies, making it difficult for them to raise fresh capital to refinance their obligations.
Conversely, the vast majority of maturing debt, valued at 194.39 billion baht (89%), is held by Investment Grade companies (BBB- and above), where the risk of default remains relatively low.
Five Companies Seek Urgent Meetings
ThaiBMA data reveals that at least four listed companies have already scheduled meetings with their bondholders in October 2568 to seek debt extensions or restructuring:
TTCL Public Company Limited (TTCL): Meeting on 16th October to propose a six-year maturity extension, a 0.50% interest rate increase, and principal repayment in instalments.
Energy Absolute Public Company Limited (EA): Meeting on 17th October to seek more time to negotiate with financial institutions for a debt restructuring plan suited to the slowing economy.
Aqua Corporation Public Company Limited (AQUA): Meeting on 30th October to discuss restructuring, extending maturity, adjusting rates, and instalment payments to boost liquidity.
Grand Asset Hotels and Property Public Company Limited (GRAND): Due to the slump in the real estate sector, they are seeking a meeting to extend their bond that matured on 14th October.
Sahakol Equipment Public Company Limited (SQ): Scheduled to hold a bondholder meeting on 17th October for several bond series.
Government Stimulus Needed
Ariya Tiranaprakij, Deputy Managing Director of ThaiBMA, stated that the outlook for Q4 remains one of risk, especially for the 11% high-yield segment, which requires close monitoring.
Ariya stressed that the ultimate solution rests with policymaking: "We still hope that the current or new government will drive policies to clearly stimulate the Thai economy in the fourth quarter of 2568. This would decrease the opportunity for problematic bonds to seek payment extensions."
She added that debt extension remains a better immediate option than default for companies genuinely committed to resolving their issues.
Analysis from a bond fund source noted that while the high-yield segment is only 11% of the total maturing debt, the concentration of risk lies specifically within the unrated and low-rated categories.
