Kot bond market booklet q2 fy2015

Q2/FY2015

Public Debt Management Office, Ministry of Finance, Kingdom of Thailand

KINGDOM OF THAILAND BOND MARKET FINANCING THAILAND’S FUTURE

& CONNECTING ASEAN

Highlight Special Savings Bond “Suk Gun Ter Rao” Thailand’s Inaugural Bond Switching The Gateway for CLMV Countries Financing

Progress Update » Funding Needs FY2015

» Greenshoe Option: Privilege for MOF Outright PDs

» Savings Bond FY2015

» GOVT Bond Auction Schedule Q2/FY2015

» PDMO Bond Calendar FY2015

- D R A F T -

Basic & Essentials » Public Debt Outstanding and Its Composition

» Bond Market Capitalization and Its Composition

» Government Bond Auction Result

» Non-Resident Holding in Domestic Bond

Funding Needs & Benchmark Bond Supply FY2015

Greenshoe Option : Privilege for MOF Outright PDs

Savings Bond FY2015

GOVT Bond Auction Schedule Q2/FY2015

PDMO Bond Calendar FY2015

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ISSUE

MONTH YEAR

0

0

Thai GOVT Bond Market Overview

B a s i c & E s s e n t i a l s

P r o g r e s s U p d a t e

21

23 24

26

25

30

34

35

38


Q1/FY2015 GOVT Bond Auction Schedule

Roadshow Bond Switching : Announce Destination Bonds

Greenshoe Option : Privilege for MOF Outright PDs

The Relaxation on Eligible Thai-denominated Bonds and

Debentures Applicants for CLMV Countries

Savings Bond Q1/FY2015

Public Debt Outstanding (as of August 2014) 5,662,574 THB Mil. (46.85% of GDP) Bond Market Capitalization (as of Sep 2014) 9,158,539 THB Mil. (77% of GDP) Total GOVT Debt (Direct + FIDF) (as of Sep 2014) 3,459,087 THB Mil. (43 Bond Series)

» Average-Time-to-Maturity (ATM) 8yrs 3mths » Average Cost 4.1%

» Fixed : Floating Ratio 88 : 12

Well-Developed Bond Market Improved GOVT Direct Debt Profile Dramatically (as of Sep 2014)


» Well-Balanced Fixed : Floating Ratio 89 : 11 » Well-Distributed Maturity Profile 41:26:33 (<5 : 6-10 : >10yrs)

FY2015 Total Fund Raising Plan (as of Sep 2014) 705,XXX THB Mil.

» Benchmark Bond (5-10-15-30-50 Tenors) 350,XXX THB Mil. » Innovative Bond (ILB and LBA) 95,XXX THB Mil. » Savings Bond ,Promissory Note and Others 260,XXX THB Mil.

Non-Resident Holding in Domestic Bond (as of Sep 2014)

» NR Holding in THB Bond 731,861 THB Mil. (7.97% of Thai Bond Market Cap.) GOVT Bond : 603,493 THB Mil. (17.5% of GOVT Bond Outs.) BOT Bond : 127,636 THB Mil. (4.6% of BOT Bond Outs.) Others : 732 THB Mil.

» Annual Capital Flow +24,501 THB Mil. GOVT Bond : +7,651 THB Mil. BOT Bond : +16,850 THB Mil.

Thai GOVT Bond Market Overview

1 4 M O F O u t r i g h t P D s

• Bangkok Bank PCL. • BNP Paribas, Bangkok Branch • Citibank N.A., Bangkok Branch • Deutsche Bank AG., Bangkok Branch • The Hongkong and Shanghai Banking

Corporation Limited • JPMorgan Chase Bank, Bangkok Branch • Kasikornbank PCL. • Krung Thai Bank PCL. • Siam Commercial Bank PCL. • Standard Chartered Bank (Thai) PCL. • TMB Bank PCL. • KGI Securities (Thailand) PCL. • CIMB Thai Bank Public Company Limited • Bank of America N.A., Bangkok Branch new

FY

20

15

Bo

nd

Ma

rk

et

P r o g r e s s U p d a t e

8

10 11

13

12

15

18

21

22

25

14

H i g h l i g ht

31

Special Savings Bond “Suk Gun Ter Rao” Thailand’s Inaugural Bond Switching

Baht Bond : The Gateway for CLMV Countries Financing

Public Debt Outstanding (as of Oct 2014) 5,640,578 THB Mil. (46.50% of GDP) Bond Market Capitalization (as of Dec 2014) 9,303,626 THB Mil. (78% of GDP) Total GOVT Debt (Direct + FIDF) (as of Nov 2014) 3,372,107 THB Mil. (41 Bond Series) Well-Developed Bond Market Improved GOVT Direct Debt Profile Dramatically (as of Oct 2014)


» Well-Balanced Fixed : Floating Ratio 88 : 12 » Well-Distributed Maturity Profile 46:17:37 (<5 : 6-10 : >10yrs)

Non-Resident Holding in Domestic Bond (as of Dec 2014)

» NR Holding in THB Bond 683,215 THB Mil. (7.36% of Thai Bond Market Cap.) GOVT Bond : 625,483 THB Mil. (18.1% of GOVT Bond Outstanding) BOT Bond : 56,980 THB Mil. (2.1% of BOT Bond Outstanding) Others : 752 THB Mil.

» Annual Capital Flow (YTD) -24,165 THB Mil.

GOVT Bond : +29,642 THB Mil. BOT Bond : -53,807 THB Mil.

Total Issuance : 100,000 THB mil.

Ministry of Finance Bank of Agriculture and Agricultural Co-operatives

Issue Size 50,000 THB mil. 50,000 THB mil.

Tenor 10-Years 5-Years

Coupon Rate (p.a.)

1yr - 3yr 3%

4yr - 7yr 4%

8yr - 10yr 5%

3.80%

Sale Amount 1,000 – 2,000,000 THB mil.

Eligible Customers

Only for retail and non-profit organization such as foundations, Thai Red Cross Society, and the National Council on Social Welfare of Thailand

Sale Period

January 12th – 23rd , 2015

- 1st Period : January 12th – 18th, 2015 : Maximum purchasing limit at 2 THB mil./person/bank

- 2nd Period : January 19th – 23rd, 2015 : No maximum purchasing limit

- 1st Period : January 12th – 16th, 2015 : Maximum purchasing limit at 2 THB mil./person/bank


Distribution Channels

4 Appointed banks : - Bangkok Bank - Krung Thai Bank - Kasikorn Bank - Siam Commercial Bank

● 4 Appointed banks : - Bangkok Bank - Krung Thai Bank - Kasikorn Bank - Siam Commercial Bank ● Bank for Agriculture and Agricultural

Co-operatives

Ministry of Finance Bank for Agriculture and

Agricultural Co-operatives

Ministry of Finance Bank of Agriculture and Agricultural Co-operatives

Issue Size 50,000 THB mil. 50,000 THB mil.

Tenor 10-Year 5-Year

Coupon Rate Will be announced by the Minister of Finance on January 5th, 2015

Sale Amount

1,000 – 2,000,000 THB mil.

Eligible Customers

Only for household and non-profit organization such as foundations, Thai Red Cross Society, and the National Council on Social Welfare of Thailand

Sale Period

January 12th – 23rd , 2015 - 1st Period : January 12th – 18th, 2015 : Maximum purchasing limit

at 2 THB mil./person/bank


January 12th – 23rd , 2015 - 1st Period : January 12th – 16th, 2015 : Maximum purchasing limit at 2 THB mil./person/bank


Distribution Channels

4 Appointed banks - Bangkok Bank - Krung Thai Bank - Kasikorn Bank - Siam Commercial Bank

● Bank of Agriculture and Agricultural Co-operatives ● 4 Appointed banks - Bangkok Bank - Krung Thai Bank - Kasikorn Bank - Siam Commercial Bank

Special Savings Bond “Suk Gun Ter Rao”

1

Ministry of Finance

Prime Minister Savings is the foundation for future growth and investments. The issuance of this Savings bond will help propel Thailand into a true Savings society.

Deputy Prime Minister Amidst fluctuating economic and financial conditions, Savings bond is a safe haven that can provide consistent returns.

Minister Finance Savings bond is the opportunity for ordinary citizens to take part in the country’s investment for the future of our country and future generations.

Permanent Secretary of the Ministry of Finance This issue of Savings bond allows quality and safe investment to be within reach of Thai citizens. It is an opportunity for Thai people to join hands with the government, not only learn more about the Thai bond market but also to support the country’s development.

BAAC General-Manager “Suk Gun Ter Rao” is the first BAAC Savings bond issued to the general public. The bond is the safest investment of its kind since it is backed by a government guarantee and budget allocation for the repayment of both interest and principle. This issue underscore’s BAAC’s role in the development of the domestic bond market and is a potential financing instrument in future.

Mr. Sommai Phasee Minister of Finance

“Medical advancement and improved health care have lengthened longevity of people around the world, Thailand included. As we are moving toward “aging society”, ‘Suk Gun Ter Rao’ savings bond with a long tenor of 10 years becomes an excellent investment opportunity for the senior citizens.

Mr. Rungson Sriworasat Permanent Secretary of the Ministry of Finance

“This special issue of savings bond allows quality and safe investment to be within reach of Thai citizens. It is an opportunity for Thai people to join hands with the government

to support the country’s economic development.”

Mr. Kritsda Udyanin Director-General of Public Debt Management Office “ The general public can now invest in savings bond starting at only 1,000 Baht. This allows the government to expand our Investors’ base, which support our effort to meet our financing needs. More importantly, it is an easy first step for each one of us to move towards financial discipline.”

2

Bank of Thailand & Bank for Agriculture and Agricultural Co-operatives

Mr. Luck Wajananawat President

Bank for Agriculture and Agricultural Co-operatives

“Suk Gun Ter Rao” is the first BAAC savings bond issued to the general public. The bond is the safest investment of its kind since it is backed by a government guarantee and budget allocation

for the repayment of both interest and principle. This special issue reaffirms BAAC’s role in

the development of the domestic bond market and is a potential financing instrument in future.

Mr. Prasarn Trairatvorakul Governor Bank of Thailand “Savings and responsible spending ensures financial discipline and security”

3

Mr. Vorapak Tanyawong President Krung Thai Bank

“Krung Thai Bank has long been one of the distributors of government savings bond. Savings bond is an investment that retail investors have shown a lot of interest in, as there is low risk. Recently, the Ministry of Finance has amended some features to promote the ease of access to savings bond for a wider range of investors with different level of income by specifying minimum investment of only 1,000 Baht. Therefore, savings bond provides investors with a low risk investment option, while ensuring consistent returns.”

Mrs. Kannikar Chalitaporn President

Siam Commercial Bank

“Siam Commercial Bank is delighted to take part in this special savings bond ‘Suk Gun Ter Rao’ as it is an

opportunity for us to play our part in promoting savings in our society. This savings bond that our bank is acting

as one of the distributors is low risk with appropriate returns. SCB’s readiness in terms of coverage of ATM

outlets and branches allows all retail investors to conveniently access savings bond. This is one of the

main factors what will help ensure success of ‘Suk Gun Ter Rao’ savings bond.”

Special Savings Bond “Suk Gun Ter Rao”

4

Mr. Predee Daochai President

KASIKORN BANK

“KASIKORNBANK is pleased to be one of the distributors of savings bond as it is a low-risk

investment with consistent returns. We are also proud to be a part of initiatives to lay the foundation to promote Thailand into a savings society. Apart from distributing ‘Suk Gun Ter Rao’ savings bond to interested investors

through branches and ATMs as usual, KASIKORN BANK also provide investors an opportunity to give savings bond as a

present for others. This is to deliver happiness to our acquaintances as an aspiration of this

‘Suk Gun Ter Rao’ savings bond.”

Mr. Chartsiri Sophonpanich President Bangkok Bank

“Ensuring financial stability is of great importance to of all families, in particular during times of financial and capital market uncertainties. A well-planned financial management through careful selection of assets and risk assessment is crucial each family members financial

security and happiness. Savings bond can provide investors with an opportunity to invest in a bond that is extremely low risk but will also provide long term and consistent returns. It is a safe option as it is issued by public sector entities including the Ministry of Finance and/or the Bank of Thailand.”

5

Special Savings Bond

Mr. Wirat Sudsawatkeattikul “ I was always invested in Savings Bond as it is a risk-free investment with sufficient interest payments in comparison to returns from the market”

6

Wat Rajabopit Sathitmahasimaram Rajaworavihara “Savings bond generate payments every six months with no risk. The proceeds will be used to renovate facilities in the temple compound.”

Mrs. Jariyaporn Klansuwan

National Institute of Development Administration Savings Co-Operative Ltd.

“Our investment guidelines allow us to invest in a wide range of products, when designing our portfolio we carefully decide on products that is in the

best interest of the COOP. Our investment objective is primarily concerned with generating good returns, but capital preservation is also very important to us.

That is why savings bond has always been an integral part of our investment strategy as savings bond is virtually free from principle and interest repayment

risks. In addition, we can also use savings bond as collateral in cash management operations with other financial institutions, therefore, it matches

our needs in more ways than one.”

13

11

1

7

“An important part of my job is to connect and to deliver government's economic policy

to business sectors who can help materialize its potential

growth.” Minister of Finance

From L to R : Mr. Sun Vithespongse, Mr. Prasit Suebdhana, Mr. Amnuay Preemonwong, Mr. Chakkrit Parapuntakul

From L to R : Mrs. Pannee Sathavarodom, Mr. Wisudhi Srisuphan, Mr. Manas Jamveha

"The big 4 banks are like rivers of capital providing finance for our economy to prosper.“


From L to R : Mrs. Kannikar Chalitaporn, Mr. Predee Daochai, Mr. Chartsiri Sophonpanich,

Mr. Vorapak Tanyawong with Minister of Finance.

From L to R : Mr. Rungson Sriworasat, Mr. Paiboon Kittisrikangwan

“Suk Gun Ter Rao” means “happy together”, my new year wish to you all.


8

The MOU signing ceremony between 4 appointed banks, BAAC and BOT witnessed by Minister of Finance and PDMO’s DG.

1. Mr. Sommai Phasee Minister of Finance (Ex PDMO’s Executive)

2. Mr. Wisudhi Srisuphan Deputy Minister of Finance 3. Mrs. Pannee Sathavarodom Advisor to the Minister of Finance (Ex PDMO’s Director-General)

4. Mr. Sun Vithespongse Secretary to the Minister of Finance (Ex PDMO’s Executive)

5. Mr. Rungson Sriworasat Permanent Secretary, Ministry of Finance 6. Mr. Chakkrit Parapuntakul Deputy Permanent Secretary, Ministry of Finance (Ex PDMO’s Director-General)

7. Mr. Amnuay Preemonwong Deputy Permanent Secretary, Ministry of Finance 8. Mr. Prasit Suebdhana Deputy Permanent Secretary, Ministry of Finance 9. Mr. Manas Jamveha Director-General, The Comptroller General’s Department 10. Mr. Kritsda Udyanin Director-General, Public Debt Management Office 11. Mr. Ace Viboolcharern Deputy Director-General, Public Debt Management Office 12. Mr. Paiboon Kittisrikangwan Deputy Governor, Bank of Thailand 13. Mr. Bordin Unakul Executive Vice President, The Stock Exchange of Thailand 14. Mr. Tada Phutthitada President, The Thai Bond Market Association (Ex PDMO’s Executive)

15. Mr. Luck Wajananawat President, Bank for Agriculture and Agricultural Co-operatives 16. Mr. Vorapak Tanyawong President, Krung Thai Bank 17. Mrs. Kannikar Chalitaporn President, Siam Commercial Bank 18. Mr. Chartsiri Sophonpanich President, Bangkok Bank 19. Mr. Preedee Daochai President, Kasikorn Bank 20. Mr. Thiti Tantikulanan Head of Capital Market Business Division, Kasikorn Bank

18 1 2 3 6 4 10 17 14 8 7 20 11 15 5 9 13 12 16 19

9

1

6 5 4

3

2

7

Mr. Nattakarn Boonsri, Director of Government Bond Market Division (L) Mr. Ace Viboolcharern, Deputy Director-General of Public Debt Management Office (R) 1

Dr. Pimpen Ladpli, Acting Executive Director of Bond Market Development Bureau (L) Ms. Pannee Sathavarodom, Advisor to the Minister of Finance (R)

Mr. Luck Wajananawat, President of Bank for Agriculture and Agricultural Co-operatives (L) Mr. Kritsda Udyanin, Director-General of Public Debt Management Office (R)

Mr. Teeralak Sangsnit, Executive Director of Debt Management Bureau 2

Mr. Theeraj Athanavanich, Executive Director of the Public Infrastructure Project Financing Bureau (L) Mr. Wisut Chanmanee, Executive Director of Debt Management Bureau 1 (R)

Mr. Paroche Hutachareon, Director of Fund Management and Bond Market Infrastructure Development Division (R)

Ms. Laksika Tengpratip, Fiscal Analyst (far R)

Mr. Nakarin Prompat, Acting Director of the International Bond Market Policy Division

5

6

4

7

2

3

10 10

The launch of Thailand’s First Bond switching was extremely successful. Can you please give us some background on why Bond Switching was introduced? Over the past decade, the Public Debt Management Office (PDMO) has played a leading role in the development of the domestic bond market, which has enabled the domestic bond market to become one of the major source to raise funds for both the private sector and for the government to finance infrastructure projects. Such significant progress in bond market development required the issuance of Benchmark bonds that is sufficiently large enough (over 100,000 billion baht) to establish the yield curve and enhance liquidity. Given the significant increase in the size of bond issuance, debt refinancing instrument will be the most crucial part to smooth out our debt portfolio. In the past, to refinance or restructure the debt, we have relied on Back to Back financing on the day of the maturity of the bond and Pre-funding within one year prior to the maturity date. These transactions have proved to be adequate but we needed various tools that can help further support

future bond market development initiative. We then explored the possibility of using bond switching and found it to be as effective as current tools in reducing refinancing risk and to avoid bunching of debt. But the main difference is that bond switching can prevent refinancing risks while at the same time enhance liquidity in the secondary market. In addition, we also believe that it is beneficial to investors in terms of providing another option for portfolio management. This is why we felt that it can become a very effective and useful tool.

Thailand’s Inaugural Bond Switching

Mr. Nattakarn Boonsri, Director of Government Bond Market Development Division

“…It was the largest single debt transaction in the history of the government and Thai bond market”

12

How does Bond switching work?

In order to understand the mechanism of bond switching, allow me to explain some key terms;

1) “Source Bond” is a Bond that has been identified by PDMO to be restructured and 2) “Destination Bond” is bond with longer maturities that can be either an “on the run” existing benchmark or a newly issued bond. Bond switching allows the bond holder of the source bond to exchange for the destination bond. This therefore, allows the PDMO to achieve both of objectives of supporting bond market development while at the same time prevent refinancing risks.

What were the steps taken to ensure the right bonds were selected?

When we introduce new instruments, either new product issuance or debt management tools, we always undertake thorough impact assessment and careful steps to ensure successful execution and limit any significant impact on the market. Prior to the launch, our team went through the following steps 1) Assess country examples from those with successful bond switching transactions including UK, Sweden, Germany and Australia. 2) Exchange ideas on concepts and methods with domestic investors to find the right features for the Thai market.

3) To facilitate the transaction, an understanding between all agencies involved needed to be reached on concept, accounting, pricing and operation of the exchange on bonds. 4) Finally, we identify the appropriate Source bond and Destination bond. For Thailand’s first bond switching on the 28 November 2014, we chose the LB155A with remaining maturities of 6 months as the Source bond and identified four maturities (3-24 years) for the Destination Bond (Table 1). The wide ranging maturities ensure that all types of investors are covered including financial instrument, mutual funds, long term investors and Non-Residents. Table 1 : Bond Switching Amount Classified By Destination Bond

Bond Maturity Date New Issued Amount (THB Mil PercentageLB176A 2 Yrs. months 22,683 32LB191A 4 Yrs. month 20,883 30LB21DA 7 Yrs. 9,436 13LBA37DA 23 Yrs. 18,015 25

Total 71,017 100

13

Are you pleased with the results of the transaction?

Yes, we are really pleased that it was very well received by the investors as that was one of our main objectives. The transaction in an amount of 76,235 billion THB is the largest single debt transaction in the history of the government and Thai bond market. The transaction reduced the outstanding amount of LB155A by around 50%, extended the maturity from 6 months to 8 years and 9 months. The transaction also helped enhanced liquidity of the destination bonds and more importantly, the transaction did not have any negative impact on the market (Figure 1). In addition, we are also pleased to see that it has covered all types of investors as initially intended during our selection process (Figure 2). Figure 1: Thailand’s inaugural bond switching results Figure 2: Bond Switching Amount classified by investors’ type

LB176A Yrs. months

LB191A Yrs. month

LB21DA Yrs.

LBA37DA Yrs.

Foreign Investor 5%

Financial Institution

63%

Long-term Investor

32%

Investor Amount THB Mil. Percentage

Financial Institution 47,366 63%

Long-term Investor 24,737 32%

Foreign Investor 4,132 5%

Total 76,232 100%

Bond Switching Participated amount classified by Investor

Investor Segmentation in Bond Switching classified by Destination Bond

Financial Institution

Long-termInvestor

ForeignInvestor

FinancialInstitution

Long-termInvestor

ForeignInvestor


Long-termInvestor

ForeignInvestor


Long-termInvestor

ForeignInvestor

19,636 mil.84%

2,015 mil 9% 1,758 mil

7%

18,589 mil 79%

4,020 mil 17% 1,014 mil

4%

5,416 mil 54% 3,914 mil.

39% 734 mil 7%

3,725 mil.20%

14,788 mil.77%

626 mil 3%

14

76,3

37

218,

683

66,8

83

210,

546

133,

015

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

LBF1

4NA

LB14

DA

LB15

5ALB

157A

LB15

DA

LBF1

65A

LB16

7A

LB16

NA

LB17

1ALB

175A

LB17

6A

LB17

OA

LB18

3ALB

183B

LB19

1ALB

193A

LB19

6ALB

198A

LB19

DA

LB21

3ALB

214A

ILB2

17A

LB21

DA

LB22

NA

LB23

3ALB

236A

LB24

4A

LB24

DA

LB25

DA

LB26

7A

LB27

DA

ILB2

83A

LB28

3A

LB29

6A

LB31

6A

LB32

6A

LBA3

7DA

LB38

3A

LB39

6A

LB40

6A

LB41

6A

LB44

6A

LB61

6A

LB155A-76,235 MB

THB Mil.

76,3

37

66,8

83

218,

683

210,

546

133,

015

Destination Bond

Source Bond

Switched Amount

What is in the pipeline for future bond switching transactions? Given the success of the inaugural bond switching transaction, bond switching will have an important role to play in PDMO’s future debt management plans in terms of reducing refinancing risks. We believe that it will be frequently used as our portfolio contains a lot of bonds with maturities more than 50,000 billion THB. In fact, the next bond switching transaction will be LB15DA with outstanding amount of 132,000 billion THB during the first half of 2015. We very much hope that the upcoming transaction will be just as successful and well received by the investors. In the meantime, we are in process of reviewing the feedbacks and relevant details to add any possible improvement for future transactions (Figure 3). Figure 3: Potential bonds for future bond switching transaction

Government Bond

Potential Source Bond for Bond Switching (Outstanding size ≥ 50,000 million baht)

Potential Source Bond for Bond Switching (Outstanding size ≥ 100,000 million baht)

13

2,0

00

21

8,6

83

30

1,9

94

10

0,8

72

21

0,5

46

19

7,8

50

10

2,5

34

12

9,1

42

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

LBF1

4N

ALB

14

DA

LB1

55

ALB

15

7A

LB1

5D

ALB

F16

5A

LB1

67

A

LB1

6N

ALB

17

1A

LB1

75

ALB

17

6A

LB1

7O

ALB

18

3A

LB1

83

B

LB1

91

ALB

19

3A

LB1

96

ALB

19

8A

LB1

9D

A

LB2

13

ALB

21

4A

ILB

21

7A

LB2

1D

A

LB2

2N

ALB

23

3A

LB2

36

A

LB2

44

A

LB2

4D

A

LB2

5D

ALB

26

7A

LB2

7D

AIL

B2

83

ALB

28

3A

LB2

96

A

LB3

16

A

LB3

26

A

LBA

37

DA

LB3

83

A

LB3

96

A

LB4

06

A

LB4

16

A

LB4

46

A

LB6

16

A

2559 2560 2561 2562 2564 2565 2566 2571 2572 2575 2584 2587 2604

LB15DAFY 2016

132,000

THB Mil.

LB176AFY 2017

218,683

LB196AFY 2019

301,994

LB21DAFY 2022

210,546

LB236AFY 2023

197,850

ILB217AFY 2021

100,872

LB296AFY 2029

102,534

LBA37DA

133,015

LB616AFY 2061

129,142

50,000

52

,00

0

55

,00

0

75

,00

0

86

,63

2

66

,88

3

69

,00

0

54

,80

0

69

,00

0

50

,70

0

70

,78

0

77

,73

0

61

,95

0

68

,58

1

95

,93

6

52

,00

0

15

How important is Baht Bond to the PDMO’s Bond Market Development Initiative? The PDMO has always been committed to developing the domestic bond market and the initiatives to promote financial market integration remains high on our priority list, in particular, at a time when ASEAN will become a single market at the end of year 2015. We believe that Baht Bond will not only add diversity and scope to support domestic bond market development but more importantly, it offers our ASEAN neighbors to tap into our domestic for project financing it their own countries. Cross border funds mobilization can open up new opportunities for infrastructure investment which is critical to enhancing connectivity and play a part in promoting “inclusive” growth for ASEAN. In order to efficiently implement Baht Bond initiative, the Baht Bond committee (the Committee) chaired by Director-General of Public Debt Management Office (PDMO), with representatives from PDMO, the Bank of Thailand (BOT) and the Securities and Exchange Commission (SEC) as committee members, has been established. Although, the initiatives started more than 10 years ago in 2004, in the early days, progress have been very gradual, but thanks to the commitment from all parties involved the Bath Bond initiatives have progressed significantly in the last few years.

Baht Bond : The Gateway for CLMV Countries Financing

Mr. Nakarin Prompat, Acting Director of International Bond Market Policy Division

“…Cross border funds mobilization can open up new opportunities for infrastructure investment which is critical to enhancing connectivity and play a part in promoting inclusive growth for ASEAN”

16

Can you please elaborate on the progress made? In particular on issues regarding which entities are now able to issue Baht Bond in Thailand?

Initially, Baht Bond issuers were limited to International Financial Institutions such as International Bank for Reconstruction and Development (IBRD), Asian Development Bank (ADB), Japan Bank for International Cooperation (JBIC). However, in order to become one of the regional financing centers, the Committee revised and gradually expanded the scope of qualifications of Baht Bond applicants for up to 6 times within the last ten years (2004-2014). Since then the committee has allowed foreign entities with a minimum of an accredited international credit rating of A- to submit applications, increasing supply of high quality bonds in the Thai market. Furthermore, to support the issuance of debt instruments under Asian bond framework, the committee has eased credit rating requirements to foreign government or agency issuers with debt guaranteed by the foreign government or Credit Guarantee and Investment Facility (CGIF), or a combination of a guarantee by CGIF and domestic credit rating of issuer’s country.

What about CLMV countries?

Recently the Baht Bond committee has facilitated the issuance of Baht Bond by entities from Cambodia, Laos PDR, Myanmar and Vietnam (CLMV). As I mentioned earlier, and I would like to stress here again that, allowing CLMV to tap into our market not only critical to promoting ASEAN financial markets integration but it also play a part in supporting inclusive growth for ASEAN countries, especially in CLMV. Applicants for Baht bond with a minimum domestic credit rating of investment grade (BBB-) of a credit rating agency approved by SEC are now eligible to apply. In order to manage adverse effects and balance of bond quality and funding cost in the local market, the Committee maintains a limit of total issuance by CLMV countries that will be revised from time to time. We are pleased that our efforts has led to EDL-Generation Public Company, a state agency from Laos PDR, successfully issued 6,500 million baht debenture with a local credit rating at BBB+, in 12 Dec 2014.

17

IFIs

Credit Guarantee and Investment Facility(CGIF)

Issuer’s Government Guarantee

Special Purpose Vehicle(SPV)

InternationalCreditRating(S&P’s, Moody’s, Fitch)

Local Credit Rating[Investment Grade]

2004

2006

2011

2012

2013

1

2

3

4

The beginning of Baht Bond

Relaxation

Total9,590 mil.

Proportion Guarantee : Guarantor/Issuer Rating 2014 5

Relaxation

Relaxation

Relaxation

Relaxation

CLMV :2014 6Relaxation

(i) International Bank for Reconstruction and Development (IBRD)

(ii) Asian Development Bank (ADB)

(iii) Japan Bank for International Cooperation (JBIC)

CITI CABEI CARGILL CBA DB

EBI HANA IBK ING KDB

KEXIM KfW SEK WOORI

No issuance

LAO PDR (3 times)(MOF)

3Y (1,2,3) 3,728 mil 5Y (2,3) 4,396 mil.

7Y (3) 1,466 mil.

Noble (Hong Kong) 3Y 2,850 mil.

Permit granted but No issuance

EDL-Gen 5Y 1,500 mil.7Y 2,000 mil.

10Y 3,000 mil.

What is the current size of Baht Bond and who has issued baht bonds? At the end of December, 2014, outstanding of Baht Bond is 91,374 million baht. Even though, it accounts for only 1% of total domestic bond market but it is a growing component with continued commitment for further enhancement from all relevant parties. More than half of Baht Bond outstanding was issued by Korean issuers, however in the past 2 years after relaxing requirements of Baht Bond applicants, there was a significant increase in Baht Bond outstanding issued by entities from CLMV counties. The government of Lao PDR has issued Baht Bond at 9,590 million baht by using the waiver of credit rating requirements to foreign government as well as the recent issuance of EDL-Generation Pubic Company. We expect more issuance in years to come as entities from CLMV countries have expressed strong interest in financing by Baht Bond issuance in Thailand.

THB mil.

0

10,000

20,000

30,000

(27,900)

31%

(22,409)25%

(5,668)6%

(9,066)

10%

(6,330)7%

(5,000)

5%

(1,500)

2% (2,800)3%

(2,000)

2%

(5,701)

6%

IBK

Woori

CA-CIB

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Lao PDR

Lao PDR Lao PDR Lao PDR Lao PDR

KEXIM

KEXIMKEXIM KEXIM

KEXIM

KEXIM

KEXIM

KEXIM

HanaWoori

Woori Woori

Woori

Hana

ADB

CBA

ING

NOBLE

CABEI

AFD

CABEI

CITI CABEI

Year

EDL-Gen EDL-GenEDL-Gen

(3,000)3%

Korean Issuers IFIs OthersLaotian Issuers

59%(54,300 THB Mil.)

22%(19,984 THB Mil.)

18%(16,090 THB Mil.)

(1,000 THB Mil.)

Korean Issuers

IFIs

Laotian Issuers

Others

Source: PDMO at the end of December, 2014

18

Guidelines for Considerations of Applicant's qualifications

The Committee has divided the evaluation criterions into two dimensions; Bond market impact (merit base) and Qualifications of applicants (qualification base). Factors of market impact that are considered include; impact to market participants, market liquidity, SWAP, baht currency fluctuation, the possibility of fund mobilization for investment in Thailand. As for qualifications, applicants must comply with MOF’s policy and regulations as well as SEC’s registration and disclosure requirements.

What is the application process (Rounds of consideration) for interest issuers?

After some changes since the beginning of Baht Bond, considerations of Baht Bond applications are now scheduled into 3 rounds per year. Applications must be submitted within March, July or November and the permitted applicants will be allowed to issue Baht Bond within 9 months period. Any permitted applicants that were unable to issue Baht Bond within the specific period will not be eligible to re-submit their application in the following round of the granted period.

What’s next for Baht Bond?

The Ministry of Finance is planning to modify Baht Bond regulations and procedure to be consistent with global standards. It will focus on the adjustment of rounds of consideration, improvement of regulations, steps in the issuance process of Baht Bond, qualifications of countries who willing to apply for Baht Bond permission, together with the possibility of the allocation of partial fund for entities in ASEAN to be in line with entry into AEC by the end of 2015. We are the process of considering feedbacks from previous Baht Bond arrangers, so that we can make the right improvements in terms of rules & conditions amendments to suit all relevant parties and support the year of ASEAN Economic Community.

19

20

Progress Update

Funding Needs FY2015

Greenshoe Option on LB21DA : Privilege for MOF Outright PDs

Saving Bond FY2015

GOVT Bond Auction Schedule Q2/FY2015


Ne

wB

orr

ow

ing

Ro

ll O

ver

39

0,X

XX

MB

3

15

,XX

X M

B

RolloverGovt Debt

RolloverFIDF Debt

209,XXX

86,XXX

On-Lending 29,XXX

Loan Bond5-10-15-30–50-yrs

Savings Bond Promissory Notes

and Others

Total Fund Raising Plan 705,XXX THB Mil.FY 2015Public Debt Management Office, Ministry of Finance, Kingdom of Thailand

By Bills By Instruments

-Tentative-

Inflation-Linked Bond

Amortized Bond

350,XXX

55,XXX

40,XXX

445,XXXTHB Mil.

Benchmark Bond

Refinance (Pre-Fund) 66,XXX

On-Lending 59,XXX

230,XXXTHB Mil.

250,XXXDeficit

2,XXXNational Catastrophe Insurance Fund

4,XXXSubstitution for foreign currency loan

* Include Infrastructure Investment

113,014 340,122 191,095 129,124 85,545 104,607 271,599 100,000 101,800 109,000

52,000 149,209 231,000 304,181 181,506 127,830 118,209 208,994 6,300 102,255 182,493

FY2011 FY2012 FY2013 FY2014 FY2015F FY2016F FY2017F FY2018F FY2019F FY2020F FY2021F FY2022F

113,014 340,122 191,095 129,124 85,545 104,607 271,599 100,000 101,800 109,000

52,000 149,209 231,000 304,181 181,506 127,830 118,209 208,994 6,300 102,255 182,493

FY2011 FY2012 FY2013 FY2014 FY2015F FY2016F FY2017F FY2018F FY2019F FY2020F FY2021F FY2022F

86MB

2,400,000MB

Government Funding Needs 560,000 THB Mil. per Year

Ne

wB

orr

ow

ing

Ro

ll O

ver

-0- -0-

-0-

-0- -0-


FIDF

GOVT

Infrastructure Investment B u d g e t B a l a n c e

Deficit Bill

6,300

Insurance Decree

2015 - 2022

NewBorrowing

300,000MB

Per year(2015-2022)

Rollover

260,000MB

Per year(2015-2022)

37,900

-0- -0-

2,XXXMB

Substitution for foreign currency bond4,XXXMB

-0-

47,414MB

100,000

59,XXXMB

On-Lending

To be announced on 13 Jan 2015

21

0

100,000

200,000

300,000

LBF

14

NA

LB1

4D

ALB

15

5A

LB1

57

AS

B1

5N

ALB

15

DA

SB

16

5A

LBF

16

5A

SB

ST

16

6A

LB1

67

ALB

16

NA

SB

16

DA

LB1

71

ALB

17

5A

LB1

76

ALB

17

OA

LB1

83

ALB

18

3B

SB

18

9A

LB1

91

A

LB1

93

ALB

19

6A

LB1

98

ALB

19

DA

LB2

13

ALB

21

4A

LB2

1D

AIL

B2

17

A

LB2

2N

ALB

23

3A

LB2

36

A

LB2

44

ALB

24

DA

LB2

5D

A

LB2

67

ALB

27

DA

ILB

28

3A

LB2

83

ALB

29

6A

LB3

16

ALB

32

6A

LBA

37

DA

LB3

83

A

LB3

96

ALB

40

6A

LB4

16

A

LB4

46

A

LB6

16

A

15

30

50

ALL FY2015 Government BondBenchmark Bonds : 5-10-15-30-50-yrsInflation-Linked Bonds : ILB 15-yrsAmortized Bond : LBA 25-yrs

Million Baht

-Tentative-

5

LB2

1D

A

Top

-up

Top

-up

ILB

21

7A

Top

-up

Budget Deficit 250,000

Rollover BD 273,xxx

On-lending 19,xxx

Benchmark+Others

SB/PN/others FY2015 628,xxx MB

New

ILB

45X

X

New

Rollover FIDF 86,xxx

10

Top

-up

15-yrInflation-Linked Bond

25-yrAmortized Bond

LB2

5D

A

ILB

28

3A

Top

-up

Top

-up

Top

-up

Top

-up

Top

-up

Benchmark Bonds Auction Size Total

5-yrs (LB21DA) 18,000-20,000

350,xxxMB

10-yrs (LB25DA) 12,000-16,000

15-yrs (LB296A) 8,000-10,000

30-yrs (LB446A) 8,000-10,000

50-yrs (LB616A) 8,000-10,000

ILB (ILB283A) 4,000-5,000 95,xxxMB

LBA (LBA37DA) 8,000-10,000

15

25

LB2

96

A

LBA

37

DA

LB4

46

A

LB6

16

A

Total Benchmark Bonds 445,xxx MB


10,0

00 M

B

10,0

00 M

B

1.46

0.5

0.28

-0.56

-1.1

-1.42-1.34

-0.78-0.9

-1.1

-1.5

0.0

1.5

3.0

4.5

-15,000

0

15,000

30,000

45,000

Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15

T-Bills Plan Q2/2015FY 2015Public Debt Management Office, Ministry of Finance, Kingdom of Thailand

Q1 Q2 Q3 Q4THB Mil. Basis Points

1 month

1) 23 Feb 20152) 3 Mar 2015

3 months

22

Greenshoe Option Privilege for MOF Outright PDsIn FY2015

Allocated(Classified by number of PDs and

their % share of total allocated size)

Submit on

“T+1” by

9.30 a.m.

Greenshoe Option will begin in January 2015 regarding to the readiness of the BOT’s add-on electronic auction system

+20%

at AAY

Series LB21DA (5-Yr Benchmark Bond .. Exclusivity)

Accepted Rate Average Accepted Yield (AAY)

Maximum Amount Additional 20% of the allocated amount

Exercise Period T (After Auction Period between 11.00-11.30 a.m.)

Settlement Date T+2

- -

LB21DA

2nd auction

20,000 MB.14 Jan 15

Auction + Greenshoe = 100,000 - 116,000 MB.

LB21DA

1st auction

20,000 MB.

21 Oct 14

LB21DA

3rd auction

20,000 MB.

25 Feb 15

LB21DA

4th auction

20,000 MB.

LB21DA

5th auction

20,000 MB.

Greenshoe 0 - 4,000 MB.




LB21DA

6th auction4,000 – 20,000 MB.

2014


2015

23

FY2016 Expiration of 3 SB 89,597 THB Mil. (55%)



FY2021 Expiration of 1 SB 11,836 THB Mil. (8%) FY2024 Expiration of 1 SB 18,164 THB Mil. (11%)

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

3. SBST166A

1. SB15NA

7. SB189A

82,230 MB

3,367 MB

31,577 MB

A

No more Saving Bond Issued … No more Saving Bond Remaining

The Last SB will be expiredin next 10 years

Savings Bond : Safe Haven for Retail Investors

Bond Tenors

4. SB16DA4,000 MB

2. SB165A

4,000 MB

2016

5. SB175A

2017 2018

4,000 MB

C

2024

8. SB217A

9. SB247A

A

E

F

2021

11,836 MB

18,164 MB

Savings Bond Outstanding at the end of December 2014

163,174 MB

As of December 30th, 2014

(9 Series)

B

D

C

B

D

6. SB17DA 4,000 MB

E

24

25,000 MB

366,490 MB

424,311 MB 381,796 MB

483,839 MB

0%

35%

0

500,000

1,000,000

1,500,000

Proportion of Household and Non-profit in Government Debt Securities

Structure Shift … Savings Bond was a Main Instrumentfor Government funding under the economic crisis

MB

29%

4%Savings Bond Outstanding

% o

f In

vest

ors

in G

ove

rnm

ent

Deb

t Se

curi

ties

73,577 MB

30,000 MB

-0-

163,174 MB

Savings Bond outstanding in Thai bond market

163,174 MB

(at the end of December 2014)

65,577 MB

18,000 MB

4%

Government Debt Securities(Classified by Types of Investors)

Today

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 20 17 2018 2021 2014FY

Insurance and

Other Corporation

Depository Corporation

NR

BOT

Householdand Non-profit 40%

33%

4%

18%

5%

Go

vern

me

nt

Bo

nd

Au

ctio

n S

che

du

le f

or

Q2

/FY

20

15

L

B21D

A =

Re-o

pen

L

B25D

A =

Re

-ope

n

I

LB28

3A =

R

e-op

en

LB2

96A

=

Re

-ope

n

LBA

37DA

=

R

e-op

en

L

B446

A =

Re-

open

L

B616

A =

Re-o

pen

Excl

usi

vity

MO

F O

utr

igh

t P

D O

NLY

Infl

atio

n-L

inke

d B

on

dA

mo

rtiz

ed

Bo

nd

Au

ctio

n D

ate

LB2

1D

A5

-yrs

Excl

usi

vity

LB2

5D

A1

0-y

rsIL

B2

83

A1

5-y

rsIn

fla

tio

n-L

inke

d

Bo

nd

LB2

96

A1

5-y

rsLB

A3

7D

A2

5-y

rsA

mo

rtiz

ed

Bo

nd

LB4

46

A3

0-y

rsLB

61

6A

50

-yrs

Tota

l

7 J

an 2

01

59

,00

09

,00

0

14

Jan

20

15

20

,00

02

0,0

00

21

Jan

20

15

16

,00

05

,00

02

1,0

00

28 J

an 2

015

4 F

eb2

01

59

,00

09

,00

0

11

Feb

20

15

5,0

00

6,0

00

11

,00

0

18

Feb

20

15

10

,00

01

0,0

00

25

Feb

20

15

20

,00

02

0,0

00

3 M

ar 2

01

51

0,0

00

10

,00

0

11

Mar

20

15

18

Mar

20

15

5,0

00

5,0

00

25

Mar

20

15

14

,00

01

4,0

00

Tota

l4

0,0

00

30

,00

01

5,0

00

10

,00

09

,00

01

9,0

00

6,0

00

12

9,0

00

Co

up

on

3.6

5%

3.8

5%

1.2

5%

4.8

75

%4

.26

%4

.67

5%

4.8

5%

Mat

uri

tyD

ate

17

-Dec

-20

21

12

-Dec

-20

25

12

-Mar

-20

28

22

-Ju

n-2

02

91

2-D

ec-2

03

72

9-J

un

-20

44

17

-Ju

n-2

06

1

25

16

Sa

tS

un

12

34

5

6A

uct

ion

T-b

ill7

89

10

11

12

13

Au

ctio

n T

-bill

14

15

16

17

18

19

20

Au

ctio

n T

-bill

21

Au

ctio

n L

B2

1D

A (

5y)

: 2

0,0

00

MB

IL

B2

83

A (

15

y) :

4,0

00

MB

22

23

Ch

ula

lon

gko

rn D

ay2

42

52

6

27

Au

ctio

n T

-bill

28

Ro

adsh

ow

De

bt

Swit

ch :

An

no

un

ce D

est

inat

ion

Bo

nd

s

29

Au

ctio

n L

B2

96

A (

15

y) :

8,0

00

MB

L

B6

16

A (

50

y) :

9,0

00

MB

30

MO

F O

utr

igh

t P

D C

om

mit

tee

:

An

nu

al P

D's

Eva

luti

on

31

Qu

arte

rly

Mac

roe

con

om

ics

Re

po

rt

(FP

O)

12

3Fi

rst

day

of

sub

mis

sio

n f

or

Bah

t B

on

d A

pp

licat

ion

(1

/20

15

)

45

67

89

10

Au

ctio

n T

-bill

11

12

Au

ctio

n IL

B2

83

A (

15

y) :

4,0

00

MB

13

14

15

16

17

Au

ctio

n T

-bill

18

19

Au

ctio

n L

BA

37

DA

(2

5y)

: 1

0,0

00

MB

20

21

22

23

24

Au

ctio

n T

-bill

25

26

Au

ctio

n L

B4

46

(3

0y)

: 9

,00

0 M

B2

72

8La

st d

ay o

f su

bm

issi

on

fo

r

Bah

t B

on

d A

pp

licat

ion

(1

/20

15

)

29

30

1Is

sue

Re

gula

r Sa

vin

g B

on

d 2

/20

15

(3y)

:

4,0

00

MB

(1

De

c 1

4 -

31

Mar

15

)

23

Au

ctio

n L

B2

5D

A (

10

y) :

12

,00

0 M

B

IL

B2

83

A (

15

y) :

4,0

00

MB

45

H.M

. th

e K

ing'

s B

irth

day

67

8A

uct

ion

T-b

ill9

Au

ctio

n L

B2

96

A (

15

y) :

9,0

00

MB

10

Co

nst

itu

tio

n D

ay1

11

2B

aht

Bo

nd

1/F

Y20

15

13

14

15

Au

ctio

n T

-bill

16

17

Au

ctio

n L

B6

16

A (

50

y) :

9,0

00

MB

18

Qu

arte

rly

PD

Ma

rke

t D

ialo

gue

19

20

21

22

Au

ctio

n T

-bill

23

24

25

26

27

28

29

Au

ctio

n T

-bill

30

31

New

Yea

r's

Eve

1N

ew Y

ear'

s D

ay2

Pu

blic

Ho

liday

34

5A

uct

ion

T-b

ill6

7A

uct

ion

LB

44

6A

(3

0y)

: 1

0,0

00

MB

89

10

11

12

Firs

t d

ay I

ssu

e S

pe

cial

Sav

ing

Bo

nd

(5y

and

10

y) :

10

0,0

00

MB

13

14

Au

ctio

n L

B2

1D

A (

5y)

: 2

0,0

00

MB

15

16

17

18

19

Au

ctio

n T

-bill

20

21

Au

ctio

n L

B2

5D

A (

10

y) :

16

,00

0 M

B

IL

B2

83

A (

15

y) :

5,0

00

MB

22

MO

F O

utr

igh

t P

D C

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Last

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24

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27

28

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31

1

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(5

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: 6

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83

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15

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12

13

14

15

16

Au

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17

18

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Au

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24

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26

27

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1

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rst

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Mar

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Jan

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Feb

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Q1

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Last

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67

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10

11

12

13

14

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19

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21

22

23

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Last

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23

24

25

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28

Basic & Essentials

Public Debt Outstanding (as of Oct 2014) 5,640,578 THB Mil. (46.50% of GDP) Bond Market Capitalization (as of Dec 2014) 9,303,626 THB Mil. (78% of GDP)

Total GOVT Debt (Direct + FIDF) (as of Nov 2014) 3,372,107 THB Mil. (41 Bond Series)

Well-Developed Bond Market Improved GOVT Direct Debt Profile Dramatically (as of Oct 2014) » Average-Time-to-Maturity (ATM) 10yrs 9mths» Average Cost 4.0%

» Well-Balanced Fixed : Floating Ratio 88 : 12» Well-Distributed Maturity Profile 46:17:37 (<5 : 6-10 : >10yrs)

Non-Resident Holding in Domestic Bond (as of Dec 2014) » NR Holding in THB Bond 683,215THB Mil. (7.36% of Thai Bond Market Cap.)

GOVT Bond : 625,483 THB Mil. (18.1% of GOVT Bond Outstanding.) BOT Bond : 56,980 THB Mil. (2.1% of BOT Bond Outstanding.) Others : 752 THB Mil.

» Annual Capital Flow (YTD) GOVT Bond : +29,642 THB Mil. BOT Bond : -53,807THB Mil.

Inaugural 10-yr Inflation-Linked Bond (10-yr)

Long-term Fixed Promissory Notes (25-35-45-yr)

Electronic Retail Savings Bond (3-5-yr) STRIPS Transaction

Scripless Retail Savings Bond Liquidity

Re-open ILB 7 yr or Launch ILB 30yr

Super- Size Inaugural 25-yr Back-End Amortized Bond

Domestic Bond Market in Transition

Building Yield Curve /Enhancing Liquidity

Regional Connectivity / AEC

Market Infrastructure

Innovation /Product Development

Debt FolioEnhancement

SustainableSource of Fund

Activated Public Debt Management Fund

Appointed 14 MOF-Outright PDStrengthening PD system

(Exclusivity, League Table, Greenshoes Option)

Bond Switching (1st execution: 28 Nov 14)

Baht Bond (Foreign Issuers Bond)

ATM Lengthened

Thai Khem Khang (350,000 THB Mil.)

2,000,000 THB Mil. Long-Term Infrastructure Inv’tWater Decree (350,000 THB Mil.)

Well-Distributed Maturity Profile / Bond Switching

Well-Balanced Fixed-Floating Ratio Cost Lowered

FIDF Decree Passed = 70,000 THB Mil. Fiscal Space

Market Deepening Oriented(2010 - 2012)

Funding Infrastructure Investment Connecting ASEAN

(2013 - 2016)

Well-Distributed Investor Base


Funding Infrastructure Investment Connecting ASEAN

8 Tenors ofBenchmark Bonds

35

7

1015

2030 50

2,400,000 THB Mil. Long-Term Infrastructure Inv’t

10 15 20 30 50

150,000 MB

Liquidity-Oriented

Outstanding Amount 3 5 7

300,000 MB

Full Funding Capacity : 1,150,000 THB MB.

Market ConsultationAnnual PDMO Market Dialogue

Quarter PDMO one-on-one PD Dialogue

STRIPS Bond

Baht Bond (CLMV)

Foreign Currency Bond

Credit Guarantee Investment Facility (CGIF)

Bond Day

Quarter PDMO one-on-group “MoF Outright PD” Dialogue

Annual PDMO Market Dialogue

Ongoing Project


29

Forecast Public Debt to GDP

Source: Policy and Planning Bureau, December 2014 , Public Debt Management Office, Ministry of Finance

(Approved by the Public Debt Policy and Supervision Committee)

Public debt projection will be in line with fiscal sustainability framework and less than 50% of GDP

Sustainability Framework

Public Debt to GDP < 60%

7.4%

0%

10%

20%

30%

40%

50%

60%

70%

2014f

2015f

2016f

2017f

2018f

2019f

2020f

% to GDP

Public Debt to GDP Repayment Budget/Budget Expenditure

Balance Budget

Sustainability FrameworkPublic Debt/GDP < 60%

Repayment Budget/Budget Expenditure < 15%


47.18%

47.5%

47.1%

46.3%

45.3%

43.9%

42.0%

7.4%

7.1%

9.3%

9.5%

9.3%

9.1%

8.7%

0%

10%

20%

30%

40%

50%

60%

70%

20

15

f

20

16

f

20

17

f

20

18

f

20

19

f

20

20

f

% to GDP

Public Debt to GDP Repayment Budget/Budget Expenditure

Balance Budget

Sustainability FrameworkPublic Debt/GDP < 60%

Repayment Budget/Budget Expenditure < 15%

Public debt Outstanding (as of October 2014) = 5.64 THB Trillion (46.50% of GDP)

Source : Information Technology Centre, PDMO

GOVT Debt51.06%

2.88 THB Trillion

GOVT Debt(for FIDF)

19.22%

1.07 THB Trillion

Non-Financial

Sate Enterprise Debt

19.04%

1.08 THB Trillion

Special Financial Institutions Guaranteed Debt

10.50%

0.59 THB Trillion

Autonomous Agency Debt

0.19%

0.015 THB Trillion

Components of Public Debt Units : THB Mil.

1. Government Debt (excluded FIDF) 2,879,968

2. Government Debt (for FIDF) 1,073,848

3. Non-Financial Sate Enterprise Debt 1,083,994

4. Special Financial Institutions Guaranteed Debt 592,320

5. Autonomous Agency Debt 10,448

Public Debt Outstanding 5,640,578

*including 75,476.40 THB Mil. of External Debt

*


30

9.4%

**Source: BOT Exchange rate (End of June 2014)

2.00

2.25

2.50

2.75

3.00

3.25

3.50

3.75

4.00

4.25

4.50

4.75

5.00

5.25

5.50

3 5 7 10 15 20 30 50

Full Capacity* of All Government Funding Instruments


* Under favorable market liquidity + using All funding instruments

LB 3 yrs 150,000 THB Mil.

LB 5 yrs 120,000 THB Mil.LB 7 yrs 80,000 THB Mil.LB 10 yrs 80,000 THB Mil.LB 15 yrs 60,000 THB Mil.LB 20 yrs 60,000 THB Mil.LB 30 yrs 30,000 THB Mil.LB 50 yrs 20,000 THB Mil.

Benchmark Bond

($4.6 Bil.)

($2.4 Bil.)

($3.6 Bil.)

($1.8 Bil.)

($1.8 Bil.)($0.9 Bil.)($0.6 Bil.)

($2.4 Bil.)

**

107

%

($35 Bil.)**

Last Update : June 2014

50

iBoxx Asia ex JapanMarkit

7.8% 7.6%

Thailand’s Loan Bonds (LBs) weighting in international indicesGBI-EM Global

JP Morgan

7.0%

The “Missing Composition” of Leader role in the Bond Market

20

15

30

3

Source: ThaiBMA Government Bond Yield Curve (End of Dec 2014)

5

Government Funding Instruments

Benchmark Bond ~600,000THB Mil. (52%)

Savings Bond ~100,000THB Mil. (8%)

Amortized Bond ~100,000THB Mil (8%)

Inflation-Linked Bond ~80,000THB Mil. (7%)

Promissory Note ~40,000THB Mil. (4%)

Floating Rate Bond ~30,000THB Mil. (3%)

Bank Loan ~200,000THB Mil. (18%)

Total 1,150,000 THB Mil. (100%)

($18.2 Bil.)

($1.2 Bil.)

($3.0 Bil.)

($0.9 Bil.)

($34.8 Bil.)

($3.0 Bil.)

($2.4 Bil.)

($6.1 Bil.)Benchmark

Bond

Infrastructure

liquidity

**Source: BOT Exchange rate (End of December 2014)

TTM

1,150,000 THB Mil. per Year

Asian Local MarketsHSBC

31

≤ 1<yr≤3 3<yr≤5 5<yr≤10 10<yr≤50

71%29%

10%

18%

20% 22% 30%

0%

20%

40%

60%

80%

100%

120%

140%

Dec

emb

er20

14

Bank Loan /GDP Equity/GDP Bond Market / GDP

Bond Market Cap. = 9.3 THB Trillion GOVT Bond = 3.5 THB Trillion

119%

75%

Domestic Bond Market Classified by Issuer% Share of GDP

Maturity Profile

BOT vs GOVT Bond


106%

Asian Fin. Crisis

12%

24%

128%

($307 Bil.)* ($116 Bil.)*

BOT ATM = 5mths GOVT ATM = 5yrs 2mth

*Source: BOT Exchange rate as End of Mar 2014 End of December 2014

*End of Dec 2014

• Allow both issuer and investors to improve their portfolio

• Larger outstanding size + Less bond series Enhance liquidity in the secondary market

• Suitable financing instrument for the government’s investment mega-project in the form of PPP • Pay back the bond principal by installments Promote the government’s fiscal discipline

FY2007 – FY2015 Innovation of GOVT Debt SecuritiesFY

20

07

-10

FY 2

01

1

• Broaden investor base – Retail investors• Low interest burden at the initial periods of bond

• Increase floating debt ratio of Total Government Debt Portfolio • Promote BIBOR (Bangkok Interbank Offered Rate)

• Lengthen average-time-to-maturity of Total Government Debt Portfolio• Meet Long-term investors’ demand

FY 2

01

2-2

01

5

PDDF Activated(Public Debt Restructuring

and Domestic Bond Market Development Fund)

UpgradePD Privileges

Baht Bond

CGIF Activated(Credit Guarantee and

Investment Facility)

Step-up Savings Bond

Floating Rate Bond

30-yr Benchmark Bond

• Lower Minimum Amount to Purchase / Offer throughout the year• Develop the retail bond into an electronic form Scripless System• Can be purchased via ATM, in addition of Bank Retail Branches

• Strong anti-inflationary signal• Deepen the Development of the Bond market

• 1st country in Emerging Asian Economies

• Combat low interest rate + Lengthen average time-to-maturity

• 4th country in the world (1st : UK 2nd : France 3rd : China)50-yr Benchmark Bond

Electronic Retail Savings Bond

10-yr Inflation-Linked Bond (ILB)

• Broaden investor base – Insurance / Long-term investors• Non-Benchmark tenorsFixed Rate Promissory Note

Bond Switching & Consolidation

Amortized Bond

15-yr ILB


32

CGIF 0.03%

Corp Bond

23%

Government

38%SOEs

8%

• 75 percent of Thailand’s debt securities are issued by Government, Bank of Thailand and State-Owned EnterprisesIssuers

• 97 percent of Thailand’s debt securities are classified as Investment GradeCredit Rating

• Thailand’s government debt securities are held by a wide group of investor typesInvestors

Domestic Bond Market(Classified by Issuers)

Equilibrium of Domestic Bond Market

Government Debt Securities (Classified by Types of Investors)

Total of 3.4 THB Trillion


BOT 6%

Insurance and

Other Corporation

36%

DepositoryCorporation

33%

NR17%

Source : ThaiBMA (End of December 2014) Source : BOT (End of November 2014)

BOT 6%

Insurance and

Other Corporation

39%


32%

NR18%

Domestic Bond Market(Classified by Credit Rating)


BOT

30%

AA 5%

A 8%

Government

38%

SOEs8%

Source : ThaiBMA (End of December 2014)

Baht Bond 1%

CGIF 0.03%



BOT

30%

SOEs

8%

Corp Bond

24% Government

37%

Insurance and

Other Corporation

33%


45%

NR10%

BOT 8%


40%

BOT 5%

Insurance and

Other Corporation

33%

NR18%

4%

Household and Non-profit

SOEs8%

BOT

30%

Government

37%

AA 5%

A 11%

BBB

3%

Non-rated2%

1. Trading Volume 2. Turnover Ratio3. Demand Concentration 4. Auction Price

FY2008-FY2014 Key Success Indicators

Benchmark Bond 5 yrs and Below : Highest secondary trading volume in every year

Top 10 GOVT Bond Series : Accounted for 90% of all GOVT bond trading volume in secondary market

Well-Developed Benchmark Bond Pays Off : Even with greater size of issuance, the cost of funding is still at market rate

Unit: % Share of Market Trading Volume

Unit: % Share of Secondary Trading Volume

5-yr Benchmark Bond’s Higher Turnover Ratio : Even the higher outstanding size, turnover ratio is still more than 2 times

Unit: Times

To be Updated

FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14

27%

20%

28%

20%9

29%

21%

7%

26%


75%

84%

76%77%

80%

90% 90%92%


LB15DA

LB155A

LB145B

LB133A

LB176A

1.5

3.12.4

4.2

2.8

4.2

2.9

LB196A

LB133A

LB196A

3.2

7.5

FY08 FY09 FY10 FY11 FY12 FY13 FY14

223363+1.2 bps

-0.4 bps -0.2 bps

Unit: USD Bil.

14.713.712.8

+1.4 bps +3.2 bps 16.5 15.9

+0.9 bps

7.5

14.6

-2.7 bps


33

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

LB19

6A

LB17

6A

LB21

DA

LB23

6A

LBA

37D

A

LB61

6A

LB15

DA

LB29

6A

ILB

217A

LB41

6A

LB18

3B

ILB

283A

LB15

5A

LB17

OA

LB27

DA

LB19

3A

LB21

3A

LB32

6A

LB19

1A

LB28

3A

LB44

6A

LB16

NA

LB19

8A

LB16

7A

LB23

3A

LB26

7A

LB24

DA

LB14

DA

LB17

5A

LB25

DA

LB31

6A

LB17

1A

LB21

4A

LB19

DA

LB15

7A

LB24

4A

LB22

NA

LB18

3A

LB40

6A

LB39

6A

LB38

3A

Ou

tsta

nd

ing

size

(TH

B M

il.)

Tier 1: >100,000MB(9 Series)

Tier 2: 50,000 – 100,000MB(16 Series)

5

10

15

LB

27

DA

LB

21

DA

LB

21

DA

ILB

28

3A

LB

17

6A

LB

44

6A

LB

19

3A

LB

61

6A

LB

A3

7D

A

15

ILB

Tier 1 > 100,000 THB Mil. in Size (83% of Trading Volume)

LB

29

6A

Tier 2 > 50,000 THB Mil. in Size (16% of Trading Volume)

50

Total GOVT Bond = 41 Series(3,372,107 THB Mil.)

(End of November 2014)

LB

19

6A

30

25

LBA

THB Mil.

Source : ThaiBMA

FY2015 Q1 Market Share of Trading Volume in Secondary Market

Tier 2Tier 1

100,000

91% 1%8%

LB

25

DA

FY 2015 on-the-run Innovative Bond

FY 2015 on-the-run Benchmark Bond


LB

15

5A

BS

Bond Switching : Source Bond

0 50 100

83% 16%

-

50,000

100,000

150,000

200,000

250,000

300,000

350,000

LB14

DA

LB15

5A

LB15

7A

LB15

DA

LB16

7A

LB16

NA

LB17

1A

LB17

5A

LB17

6A

LB17

OA

LB18

3A

LB18

3B

LB19

1A

LB19

3A

LB19

6A

LB19

8A

LB19

DA

LB21

3A

LB21

4A

ILB

217A

LB21

DA

LB22

NA

LB23

3A

LB23

6A

LB24

4A

LB24

DA

LB25

DA

LB26

7A

LB27

DA

ILB

283A

LB28

3A

LB29

6A

LB31

6A

LB32

6A

LBA

37D

ALB

383

ALB

396

ALB

406

ALB

416

ALB

446

A

LB61

6A

TTM

Source : ThaiBMA

Well-Distributed Bond Maturity Profile(End of November 2014)

LB

27

DA

LB

21

DA

LB

17

6A

1 2 543

LB

25

DA

ILB

28

3A

LB

44

6A

LB

61

6A

LB

A3

7D

A

LB

29

6A

LB

21

DA

6 – 10 years 11 – 50 years

10

50

Current Outstanding ≤ THB 50 Bil.

FY 2014 on-the-run Benchmark Bond

Current Outstanding ≥ THB 100 Bil.

Current Outstanding = THB 50-100 Bil.

5

FY 2014 on-the-run Innovative Bond

THB Mil.

100,000

15

15

ILB

25LBA

30


The outstanding size of loan bond maturing in the next 5 years

is 1,377,109 THB Mil. (43% of Total GOVT Bond)

LB

15

5A

BS

Bond Switching : Source Bond

34

35

(1) ATM Lengthened(2) Cost Lowered(3) Well-Balanced Fixed-Float Ratio(4) Well-Distributed Maturity Profile

Well-Developed Bond Market Improved

GOV’T Direct Debt Profile Dramatically

Well-Balanced Fixed/Floating Ratio(Target : Fixed/Float ratio = 80 : 20)


Well-Distributed Maturity Profile(Maturing Debt in the next 5 yrs is less than 50% of Total Debt)

Floating 12%Floating 10%

ATM

5yrs 3mths

ATM

10yrs 9mths

Avg. cost

4.5%

As of Dec 2007 As of October 2014

Avg. cost

4.0%

Fixed

90%

Note : Government Direct Debt = 2.80 THB Million (exclude FIDF)

Fixed

88%

Avg. Cost LOWERED by 50 bps.(While ATM Lengthened by 5 yrs)

Average-Time-to-Maturity

LENGTHENED by 5 yrs

next 5 yrs year 6 - 10 10yrs +

54%28% 18%

next 5 yrs year 6 -10 10 yrs +

54%

28%18%


next 5 yrs year 6 -10 10 yrs +

46%

17%37%

268,

022

164,

297

135,

665

136,

739

360,

484

4,75

0

11,8

36

184,

110

79,8

50

50,6

64

47,0

00

212,

360

101,

512

2,20

0

41,9

00

33,5

81

6,50

0

107,

000

5,50

0

20,0

00

95,9

36

40,0

00

29,8

00

27,8

00

135,

114

86,6

30

16,0

00

22,0

00

18,9

00

43,0

00

24,7

00

35,0

00

13,0

00

939

24,7

57

20,0

00

10,0

00

12,6

93

60,0

00

0

100,000

200,000

300,000

5844

0

3983

6

1419

62.5

1

2500

0

25,0

00

3790

0

4000

0

0

7100

0

0

0 3500

0

0

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

2710

4.62

6753

7.23

1280

00

9041

8.11

1018

00

0

6900

0

1268

50

1400

0

0

100,000

200,000

300,000

Next 5 yrs 6-10 yrs 10 yrs +

44%

25%31%

Average-Time-to-Maturity (ATM) = 9.1 yrs

Average Cost = 4.00%

Fixed : Floating = 87 : 13Total Domestic GOVT Debt = 3.88* THB Trillion

Assumptions : 6 months BIBOR = 2.29%, 6 months Fixed Deposit Rate = 1.41%, Inflation = 1.48%

As of Oct 2014

**Excluding 76,048 THB Mil. of Foreign Debt

* Excluding 75,476 THB Mil. of Foreign Debt

GOVT Debt (for FIDF) = 1,073,848 THB Mil.

GOVT Direct Debt (exclude FIDF) = 2,804,492** THB Mil.

TTM Fiscal Year

Budget Deficit T-Bill TKK On-lending Loan Water Decree

Maturity Profile

ATM = 10yrs 9mths Avg. Cost = 4.00%

Fixed : Floating = 88: 12

Callable = 7%

34% 28%38%


FIDF 1 FIDF 3

TTM Fiscal Year

Maturity Profile

Next 5 yrs 6-10 yrs 10 yrs +

63%

32%5%

ATM = 4yrs 6mths Avg. Cost = 3.97%

Fixed : Floating = 83: 17

Callable = 15%

46%

17%37%

20,000 20,000 20,000 20,000 20,000 20,000 13,000 12,000 16,000 16,000 15,000 10,000 7,000

10,000 10,000 6,534 10,000 9,000 5,000 9,000 9,000

9,000 12,000 8,000 5,000

8,000 9,000 9,000 8,691 7,246

10,080 13,982

14,110

34,42231,275

37,490

57,619

48,515

42,320

16,942

27,554

39,017

32,126

21,070

15,89717,885

3,466

15,052

10,286

18,43521,05322,425

20,119 18,525

12,473

19,540

3,7543092.7

-0.4-1.2

-2.4

1.8

3.23.9

2.9

-0.2-0.8

0.2-0.2

-6.1

3.2

-7.0

-2.2

-4.1

2.3

-15.0

-7.8

-8.9

-3.7-3.2

-2.8

-8.3

-9.6

-8.1

-11.4

-3.4

-2.3

-15

-10

-5

0

5

10

15

-100,000

-50,000

-

50,000

100,000Benchmark Bond 15 – 50yr

Public Debt Management Office, Ministry of Finance

FY 2014 GOVT Bond Auction Results Classified by Tenor

A

B

Basis Points

B

5yr(Exclusivity)

10yr 15yr 30yr 50yr

T-1= 0

A u c t i o n R e s u l t s B e l o w T h e M a r k e t P r i c e

5.0

2.5

7.5

10.0

12.5

-10.0

-12.5

-7.5

-5.0

-2.5

Million Baht Bps

ALL Benchmark Bond : Fully Allocated

30-to-50-yr Benchmark Bond : Avg.Accepted LOWER than Market Price

B

A

F u l l y A l l o c a t e d

T-1= 0

Benchmark Bond 5 – 10yr

Short-term Benchmark Bond (<10 yrs)Long-term Benchmark Bond (>10 yrs)

Not Fully Allocated or SubscribedAverage Accepted Yield

Million Baht

Public Debt Management Office, Ministry of Finance

T-Bill Auction Result

Basis Points

T-1= 0

T-bill (Allocated Amount)R-Bill (Allocated Amount)Participated Amount (Excess Demand)Not Fully Allocated Spread [AAY-Yield(T-1)]

FY2014 Low Cost of Funding High Volume of Short-term Demand

SEP OCT NOV DEC JAN FEB MAR APR MAY JUN

36

37

0

250,000

500,000

750,000

1,000,000

1,250,000

Plan: Announced Government’s funding need at PDMO’s Annual Market Dialogues in SeptemberActual: Actual fund raising at the end of fiscal year (calculated from announced auction)

-------------- The difference between ‘’the announced’’ and ‘’the actual’’ supply of benchmark bond (% share)

Benchmark Instruments are Benchmark Bonds : Standard Loan Bond (LB) tenors 5-10-15-30-50yr (in FY 2014) + Innovative Products : Inflation-linked Bond (ILB) + Amortized Bond (LBA) Regular issuance/ Consultation with PDs/ Pre-announced auction table

Other Instruments : Saving Bond, Floating Rate Bond, Promissory Notes, Bills and Bank Loan

Unit : Million Baht

Keep our word… to get investors confidence for the plan

A

Plan Actual Plan Actual Plan Actual Plan Actual Plan Actual Plan

Stimulus package to ease:US financial crisis

0%

Economic Recovery

Higher-than-expected revenue collection

Lower-than-expected disbursement

of Water DecreeLower-than-expected

disbursement of Water Decree

756,xxx MB

-6%

-3%

+5%

+2%

Actual

99%

(end of Sep,14)

Delay of Infrastructure Investment Plan

38

+23,433

+80,152

-36,164

-57,427

-100,000

-75,000

-50,000

-25,000

0

25,000

50,000

75,000

100,000

WK

1

WK

2

WK

3

WK

4

WK

5

WK

6

WK

7

WK

8

WK

9

WK

10

WK

11

WK

12

WK

13

WK

14

WK

15

WK

16

WK

17

WK

18

WK

19

WK

20

WK

21

WK

22

WK

23

WK

24

WK

25

WK

26

WK

27

WK

28

WK

29

WK

30

WK

31

WK

32

WK

33

WK

34

WK

35

WK

36

WK

37

WK

38

WK

39

WK

40

WK

41

WK

42

WK

43

WK

44

WK

45

WK

46

WK

47

WK

48

WK

49

WK

50

WK

51

WK

52

WK

53

Ver

bal

Inte

rven

tio

n4

Me

asu

res

of

Cap

ital

Co

ntr

ol

Net Change in Non-resident Holding BOT Bond vs GOVT Bond

2014Weekly Accumulate

Tapering QE3-to-dateTotal Outflow = 83,437 Mil.

(BOT = 52,050 Mil.)(GOVT = 31,387 Mil.)

As of Jan 31 2014

THB Mil.

- 53,807THB Mil.

(30th Dec 2014)

BOT Bond

(30th Dec 2014)

+29,642THB Mil.

GOVT Bond

January 2014

As of 30th Dec ,2014

0

-22,494

+30,216 -1,598

+129,454+117,144

+196,463

+96,738

+29,642

-27,157

-2,793-7,506

+84,003

+23,052

+93,249

-100,506

-53,807

-150,000

-100,000

-50,000

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

2007 2008 2009 2010 2011 2012 2013 2014

GOVT Bond

2007-09 : Net outflow = 43,xxxMB

GOVT

BOT

THB Mil.

2010-13 : Net inflow = 650,xxxMB

0

To be Updated

BOT : Net Sell -10,394 MB. Buy +58,791 MB. Sell -69,185 MB.

GOVT : Net Sell -57,427 MB. Buy +31,053 MB. Sell -88,480 MB.

2013 YTD(27 Dec 2013)

Non-resident Net Buy/Sell in BOT Bond

Non-resident Net Buy/Sell in GOVT Bond

2013 : Net outflow= -3,7xxMB

GOVT Bond +29,642 THB Mil. (2014YTD)

Annual Net Capital Flows indicates strong confidence in GOVT Bonds

.

THB Mil.

As of 30th Dec, 2014

THB Mil.

BOT

GOVT

39

0%

10%

20%

30%

40%

Mar-51

Jun-51

Sep-51

Dec-51

Mar-52

Jun-52

Sep-52

Dec-52

Mar-53

Jun-53

Sep-53

Dec-53

Mar-54

Jun-54

Sep-54

Dec-54

Mar-55

Jun-55

Sep-55

Dec-55

Mar-56

Jun-56

Sep-56

Dec-56

Mar-57

Jun-57

Non-Resident Holding in Thai GOVT Bond is 683,215 THB Mil.

or 18.1% of Total GOVT Bond Outstanding

PeersComparison

Percentage share of Non-resident Holding in Local Government Bond (Mar 2008 - Present)

1%

(27,424 THB Mil.)

Source : AsianBondsOnline, ThaiBMA

As of Aug 30th 2013

Relatively “moderate” share of NR holding by region average

To be Updated



Malaysia32.03%

Jun’ 14

Japan8.54%Jun’ 14

2008 2009 2010 2011 2012 2013 2014

1.5%

(27,474 THB Mil.)

Indonesia

37.3%Sep’ 14

Korea10.55%

Jun’14

Thailand18.1%

As of 30th Dec,14

Peak @ 19.1%(Apr’ 13)


Oct

-14

No

v-14

Dec

-14

IssuerNon-Res ident Holding

(THB Mi l l ion)% Share of Thai Bond Market Cap.

(9,202,573 THB Million)

GOVT Bond 574,063 6.24%1.390%

BOT Bond 118,177 1.28%1.28

SOE Bond 0 0.00%0.01

Corp Bond 666 0.01%

TOTAL 692,906 7.53%

IssuerNon-Resident Holding

(THB Million)% Share of Thai Bond Market Cap.

GOVT Bond 625,483 6.74%

BOT Bond 56,980 0.61%

SOE Bond - -

Corp Bond 752 0.01%

TOTAL 683,215 7.36%

Non-Resident Holding in THB Bond = 683,215 THB Mil.

Thai Bond Market Cap. =9,287,288 THB Mil.

GOVT Bond Outstanding3,452,687 THB Mil.

BOT Bond Outstanding2,742,756 THB Mil.

Baht Bond(Foreign Issuers Bond)

Corp Bond

SOEs Bond

BOT Bond

GOVT Bond

1%

24%

9%

30%

36%

2,742,756 THB Mil.

3,452,687 THB Mil.

Non-Resident56,980 THB Mil.

Non-Resident625,483 THB Mil.

2014 Outstanding

CGIF 0.03%(For Asian Bond Market Initiative)

As of Aug 23rd 2013

Domestic Investors

81.9%

2,827,204 THB Mil.

%

% %

2,685,776 THB Mil.

97.9%

Domestic Investors


11

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36

33

33

Kritsda Udyanin Director-General, Public Debt Management Office

http://www.pdmo.go.th Tel. +66 2271 7999 , +66 2265 8050

For Further Information :

Pimpen Ladpli [email protected] Senior Expert on Bond Market Development Acting Executive Director of Bond Market Development Bureau

Nattakarn Boonsri [email protected] Director of Government Bond Market Development Division

Sophida Sritomya [email protected] Director of Financial Product Development Division

Paroche Hutachareon [email protected] Acting Director of Fund Management and Bond Market Infrastructure Development Division

Nakarin Prompat [email protected] Acting Director of International Bond Market Policy Division

Kot bond market booklet q2 fy2015

Documents

Transcript of Kot bond market booklet q2 fy2015