Bangkok One News
Home » B40 Billion in Savings Bonds Set for Sale in August.
Bangkok News Breaking News

B40 Billion in Savings Bonds Set for Sale in August.

B40 Billion in Savings Bonds Set for Sale in August.

The Public Debt Management Office (PDMO) is set to sell the final tranche of its savings bonds valued at 40 billion baht in August, a decrease from the originally planned 60 billion baht.

According to Patchara Anuntasilpa, the director-general of the PDMO, the office has already issued 40 billion baht in savings bonds for fiscal year 2024, out of an initial target of 100 billion baht. This leaves an outstanding balance of 60 billion baht still to be issued.

However, due to delays in budget disbursement this year, the PDMO found that it does not need to borrow as much as initially intended, prompting a reduction in the savings bond issuance amount by 20 billion baht to better align with actual needs.

The next sale of savings bonds will take place from August 13 to August 30, featuring maturities of five and ten years. The interest rates are set at 3% per year for the five-year bonds and 3.40% per year for the ten-year bonds.

Regarding foreign-currency bonds, Mr. Patchara stated that the PDMO will postpone the offering due to considerable disparities between domestic and international interest rates. Selling bonds now would raise government costs and be impacted by the weakening baht.

Nevertheless, the PDMO is preparing information for future foreign-currency bond offerings, which will be presented when conditions are more favorable, he noted.

In addition, Mr. Patchara announced plans to issue sustainability-linked bonds worth 30 billion baht in September, coinciding with the end of fiscal year 2024. The PDMO is currently determining interest rates for these bonds based on environmental indicators, with a maturity of 15 years.

Mr. Patchara also indicated that for the remaining portion of this fiscal year, the PDMO expects significant fundraising to support expenditures in fiscal years 2024 and 2025, particularly as budget expenditures are likely to concentrate toward the end of fiscal year 2024, followed by accelerated disbursement at the beginning of fiscal year 2025.

“For the rest of this year, the PDMO has plans in place to raise a substantial amount of funds for the government. However, this is not expected to affect the liquidity of the private sector, which is also seeking to raise funds during this time. The notable inflow of funds anticipated at the year’s end is expected to positively impact this year’s GDP growth,” he said.

Translate »