The cost of bonds assigned an A rating such as those offered by
"The private sector's financial position is solid and among the country's major economic drivers, so corporate bonds are very important. The lower the funding cost, the higher the efficiency they will have in driving the economy," said Tada Phutthitada, president of the
Fund mobilisation through bond issues is less popular among privately owned companies than borrowing from banks or equity offerings.
Outstanding bonds as of
Bonds account for 76% of GDP. The government including the Bank of
Corporate bond issuers are concentrated in five major sectors ? banking, energy, financial institutions, construction and property.
"Corporate bonds have plenty of room to grow. Only 20% of SET-listed companies have issued bonds. A number of large non-listed companies also have potential to issue bonds,"
New bond issues are expected to hit a fresh high this year as the private sector locks in low interest rates to prepare for expansion ahead of a rate hike seen as likely next year.
The TBMA recently estimated companies would raise more than
To encourage more bond issues, it will join with the
The TBMA also plans to facilitate Thai companies issuing bonds abroad and promote foreign companies launching baht-denominated bonds.
It also plans to set up a bond academy in each of the country's four regions.
Related search: market, corporate, bond
(c)2014 the Bangkok Post (Bangkok, Thailand)
Visit the Bangkok Post (Bangkok, Thailand) at www.bangkokpost.com
Distributed by MCT Information Services