Thai Finance Ministry to issue 5-yr savings bonds in July

BANGKOK, June 4 (TNA) – Thai Finance Minister Korn Chatikavanij has given approval for the issuance of five-year saving bonds worth Bt30 billion in July, said the Ministry’s director-general of Public Debt Management Office Pongpanu Svetarundra on Thursday.

The planned issuance of saving bonds is in line with the government’s stategy to borrow money during current fiscal 2009 which ends this September 30, said Mr. Pongpanu.

A higher than market interest rate will be offered in order to attract investors and the rate will be increased after the initial three-year term, he said.

The bonds will be offered to the public and the minimum purchase for any investor is Bt10,000, while the maximum is Bt10 million, said Mr. Pongpanu.

He said he was optimistic that the bonds would receive a positive response from investors as they offer better-than-market rates, hold no risk and the five-year maturity is neither too short nor too long.

Between three and four commercial banks will help sell this issue rather than just one bank which is the normal practice, he said. This should encourage a wider range of retail investors to buy them, he said. (TNA)