How to Invest
Choosing the Securities you Want to Buy
Corporate Securities At-A-Glance
1. State Owned Enterprise Bonds
| Issuer | State-owned enterprises (SOEs). Eighty-five percent of SOE bonds are guaranteed by the Ministry of Finance (MOF). |
| Tenor | 1 – 20 years |
| Currency | Thai baht |
| Interest Payment | Quarterly, semiannually, and annually. |
| Average Issue Size | THB500 million – 2,000 million. |
| Minimum Amount of Bid | The minimum investment 500 units or THB 500,000 and in multiple of 100 units or THB 100,000. |
| Method of Sale in the Primary Market | SOEs are offered to primary dealers through Dutch auction facilitated by the Public Debt Management Office of Thailand. |
| Who May Apply | MOF asks financial institutions to bid as underwriters for SOE bonds. |
| Redemption | Bonds are redeemed at par upon maturity. |
| Taxation | Taxes vary depending on type of investor and type of income. |
| Secondary Market Trading | Over-the-counter (OTC) and at the Bond Electronic Exchange (BEX). All OTC trades are reported to The Thai Bond Market Association. |
2. Corporate Debentures
| Issuer | Corporate and finance companies |
| Tenor | 1 – 10 years. |
| Currency | Thai baht. |
| Interest Payment | Quarterly or Semiannually |
| Average Issue Size | THB1 billion – 10 billion. |
| Minimum Amount of Bid | Generally, corporate debentures par is THB1,000. But when the bonds are offered, the issuer sets the minimum amount per bid, normally about THB1,000,000. |
| Method of Sale in the Primary Market | Public offer and private placement. |
| Who May Apply | Financial institutions, corporations and individuals. |
| Redemption | Bonds are redeemed at par upon maturity. |
| Taxation | 15% withholding tax. |
| Secondary Market Trading | Over-the-counter (OTC) and at the Bond Electronic Exchange (BEX). All OTC trades are reported to The Thai Bond Market Association. |
List of Corporate Bond Issuers
A. State Owned Enterprises
State Owned Enterprise (SOEs) bonds are issued for infrastructure projects, and can either be guaranteed by the Ministry of Finance (i.e., MOF SOEs) or without MOF guarantee, (i.e., non-MOF SOEs). Eighty-five percent of SOE bonds are MOF guaranteed.
B. Corporate Debentures
Corporate bonds or corporate debentures are issued by private corporations and may be categorized as straight, convertible, amortizing, or securitized bonds, with fixed or floating rates.