The Thai Bond Market Association (ThaiBMA) forecasts the issues of long-term corporate debentures to reach a new high of Bt880 billion this year, over its earlier estimate of Bt720-Bt750 billion, thanks to the upward trend in interest rates.
Ariya Tiranaprakij, executive vice president of ThaiBMA, said companies have launched more debenture issues to lock in funding costs amid rising rates. In 2016, new corporate bond issues stood at Bt812 billion.
This year, several companies which acquired enterprises abroad have refinanced their operations through debenture issues, including Thai Beverage Plc which has issued Bt120-billion in debentures so far.
"It's possible for private companies to issues debentures worth a total of Bt900 billion this year. We've seen the figures set to be launched, the existing debentures set to reach their maturity and the Bt711 billion worth of debentures already launched this year. It is likely that total debenture issues will reach Bt880 billion this year , a new record high and higher than our earlier estimate of Bt720-Bt750 billion," Ariya said.
NORDIC CHAMBERS BACK ANTI-GRAFT INITIATIVE
Four Nordic Chambers of Commerce in Thailand comprising Danish-Thai Chamber of Commerce, Thai-Norwegian Chamber of Commerce, Thai-Swedish Chamber of Commerce, and Thai-Finnish Chamber of Commerce, have collectively pledged to support their members to sign up with Thailand's Private Sector Collective Action Coalition against Corruption (CAC).
The four Nordic Chambers of Commerce have jointly signed a memorandum of understanding with the CAC at the sideline of the CAC's 9th annual National Conference "Disrupting Corruption" in Bangkok.