The Securities and Exchange Commission (SEC) in Thailand has opened up a public consultation period to gather feedback on proposed amendments and draft regulations related to the sale of newly issued bonds denominated in Thai baht by foreign entities. The SEC aims to streamline the application process and align the criteria for issuance and sale of foreign currency-denominated bonds with those for baht bonds.
Under the proposed amendments, foreign issuers would be required to directly file an application with the SEC, obtain an investment-grade rating from an international credit rating agency, appoint a bondholder representative, and register the bonds with the Thai Bond Market Association. These changes aim to better reflect the level of risk associated with foreign issuers.
Currently, foreign issuers must adhere to approval and disclosure rules and obtain approval from the Ministry of Finance. However, under the proposed amendments, these issuers would only need to file an application directly with the SEC.
Importantly, the SEC has proposed a temporary exemption for outstanding non-investment grade bonds from the new requirements. Additionally, the amendments seek to align the criteria for foreign currency-denominated bonds with those for baht bonds.
Interested stakeholders and parties can provide their comments and suggestions on these proposed changes until December 20, 2023.
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