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“Thai Bond Market Association” reveals the year ’64 of debentures with a deal of approximately 7.3 billion baht, indicating a large company – a wealthy business magnate. Keep an eye on banks, cut low interest rates, lend loans, win big customers
Ms. Ariya Tiranaprakit Deputy Managing Director The Thai Bond Market Association (ThaiBMA) disclosed “Prachachat Business” that in 2021, there will be more than 730 billion baht of private debt instruments (debentures), which are classified as investment grade, representing a greater proportion. 93% of the bond issuers 127 out of 190 companies, so if the situation of the coronavirus outbreak Tend to be better Believe that the economic picture will return forward And the private sector would have raised funds and issued debentures
“Might be able to see the bond market return to bustle again. Because the cost of the interest rate is still considered low. Which will facilitate the private sector to raise funds But investors will have to choose and consider individually Because there may be some issuers who have been impacted by COVID in the past year. And still not sure if this year will return to the same recovery or not “
For large companies with debentures maturing in 2021, the initial value is approximately 177,450 million baht, consisting of: 1. Thai Beverage Public Company Limited or ThaiBev worth 48,000 million baht, which will be completed in the month of March. C. Number of two models, valued at 31,600 million baht and valued at 16,400 million baht.
2. The Siam Cement Public Company Limited or SCC has debentures to reach a deal worth 50,000 million baht in April and November.
3. Bank of Ayudhya (BAY) will complete a deal worth nearly 30 billion baht in January, amounting to 15 billion baht and in July, approximately 14 billion baht
4. True Move H Universal Communication Company Limited or TUC will have a bond worth 12,000 million baht in August.
5. PTT Global Chemical Public Company Limited or GC will have debentures, complete the deal in August, worth 20,000 million baht.
6. PTT Public Company Limited or PTT will have debentures, complete the deal in November, worth 10,000 million baht and
7. CPF (Thailand) Public Company Limited or CPFTH will have debentures, complete the deal in January, worth 7,450 million baht.
“These big bucks are the companies that have high ratings. Therefore, there should not be an issue in selling debentures. But what you need to look at is that the bank has a relatively large liquidity system. These companies decide to issue bonds. Would have to compare the cost of interest Between issuing new debentures and the interest on loans offered by the bank during that period. “ Ms. Ariya said.
While the direction of foreign investment flows (fund flow) in the Thai bond market Ms. Ariya said Should still see foreign money flowing in this year Because the yield in the Thai bond market is still quite good. If comparing the country’s fundamentals Thailand bonds are considered to be of interest to foreigners. In addition, there was another by-product from the appreciation of the baht.
However, it may also be necessary to pursue the policy of the new President of the United States, Joe Biden, to how much it will affect the overall investment climate that drives capital flows into emerging markets. At the same time, the COVID-19 epidemic remains to be monitored. Within the country as well
Ms. Ariya said that As for the Thai government bond yield at the end of 2020, the 1-month short-term bond was 0.35% per annum, below the policy rate. While the long-term bond, the 10-year model, the interest rate is 1.3-1.4%. If you look at the Thai economic outlook that has not yet recovered. It is estimated that the Bank of Thailand (BOT) will not cut the policy interest further until the first quarter of 2021. However, additional economic factors must be considered.
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