Mizuho Bank has won the Thai authorities' approval to raise Bt3 billion through a baht-denominated bond issue, the first under the Asean+3 Multi-Currency Bond Issuance Framework (AMBIF) cooperation.
“With the Mizuho Bank pilot issuance of baht-denominated bonds in Thailand under AMBIF, bond market development in Asean +3 region has reached another milestone. This also reflects international recognition on solid foundation of Thai capital market. In addition, AMBIF initiative will help widen access to a variety of financial options for Thai businesses while staying cost competitive, whereas provide Thai investors with more choices of investment and better diversification," said Rapee Sucharitakul, secretary-general of Thailand's Securities and Exchange Commission.
AMBIF, an initiative of Asean Bond Market Forum (ABMF), aims to boost product quantity and variety and the growth of bond market in Asean + 3 in response to demand of fundraisers and investors in the region. Bond issuers will be enabled to raise funds through multi-jurisdictional offerings to non-retail investors with a standard filing form prepared in English language.
In a statement, the Asian Development Bank (ADB) welcomed the baht bond issue, saying the framework has standardised bond issuance and investment processes across the region so that borrowers from one country can easily tap markets in other countries, and so investors can easily put their money to work in other countries in the region.
The framework is initially being used in six markets: Hong Kong, China; Japan; Malaysia; the Philippines; Singapore; and Thailand, and is expected to expand to the rest of the region.