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193855
Sat, 07/09/2011 - 11:45
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http://m.oananews.org//node/193855
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Thailand to issue first ILB
BANGKOK, July 9 (TNA) - The Thai Ministry of Finance will issue the inflation-linked bond (ILB) for the first time in the Kingdom on July 11-13.
Chakkrit Parapantakul, Director-General of the ministry's Public Debt Management Office (PDMO) said a recent market survey showed that investors' demand for Thailand's first-ever ILB had reached 65 billion baht, some 1.6 times more than what his ministry earlier planned to sell, at 45 billion baht.
Chakkrit revealed that the market survey, jointly conducted by the PDMO and four banks officially authorised to sell the ILB, including HSBC, Krung-Thai Bank, Kasikorn Bank, and Siam Commercial Bank, also suggested that the first-ever Thai ILB offer a 1.20 per cent return to investors.
At the return rate, Chakkrit acknowledged, investors had said they would invest some 53 billion baht in the bond, 25 million baht of which would come from foreign investors; while the remaining 28 billion baht would be from local investors comprising both large-scaled institutional and small-scaled investors.
The PDMO chief said that two-third of the bond would be allocated to local investors, mostly are institutions at some 24 billion baht, including insurance companies, public funds and financial institutes, representing “Market Makers" or those who would help boost liquidity in the secondary market through selling the ILB to local small-scaled investors and non-profit organizations such as educational cooperatives and foundations.
According to the PDMO chief, the rest will be sold to foreign investors, mostly are long-term investment funds with those from 10 economies, including the United Kingdom, the United States, Japan, South Korea, Singapore, Australia and Hong Kong, having expressed their interest in purchasing the first-ever Thai ILB.
The inflation-linked bond or ILB, also called the inflation-indexed bond or IIB, is a specially-issued bond whose principal is indexed to inflation, aimed to cut out inflationary risks for investors. (TNA)
Chakkrit Parapantakul, Director-General of the ministry's Public Debt Management Office (PDMO) said a recent market survey showed that investors' demand for Thailand's first-ever ILB had reached 65 billion baht, some 1.6 times more than what his ministry earlier planned to sell, at 45 billion baht.
Chakkrit revealed that the market survey, jointly conducted by the PDMO and four banks officially authorised to sell the ILB, including HSBC, Krung-Thai Bank, Kasikorn Bank, and Siam Commercial Bank, also suggested that the first-ever Thai ILB offer a 1.20 per cent return to investors.
At the return rate, Chakkrit acknowledged, investors had said they would invest some 53 billion baht in the bond, 25 million baht of which would come from foreign investors; while the remaining 28 billion baht would be from local investors comprising both large-scaled institutional and small-scaled investors.
The PDMO chief said that two-third of the bond would be allocated to local investors, mostly are institutions at some 24 billion baht, including insurance companies, public funds and financial institutes, representing “Market Makers" or those who would help boost liquidity in the secondary market through selling the ILB to local small-scaled investors and non-profit organizations such as educational cooperatives and foundations.
According to the PDMO chief, the rest will be sold to foreign investors, mostly are long-term investment funds with those from 10 economies, including the United Kingdom, the United States, Japan, South Korea, Singapore, Australia and Hong Kong, having expressed their interest in purchasing the first-ever Thai ILB.
The inflation-linked bond or ILB, also called the inflation-indexed bond or IIB, is a specially-issued bond whose principal is indexed to inflation, aimed to cut out inflationary risks for investors. (TNA)
