Laos, power company, may issue baht bonds

Economy September 08, 2017 17:23

By The Nation

Two foreign entities have been given permission to issue baht-dominated bonds or debentures up until May 31, 2018, the Ministry of Finance announced on Friday.



 

The Ministry of Finance of Laos, and the Nam Ngum 2 Power Company may now issue bonds and debentures within rules set by Thailand’s Ministry of Finance.

The Ministry has also announced that other organisations could submit an application to issue baht-dominated bonds or debentures for no longer than three years. Proceeds would be allowed to be used for domestic transactions in baht and in onshore US dollar and Thai baht spot exchanges.

Assessment of applicants will consider the impacts on Thai corporate bond issuance, the opportunity for domestic investors to invest in quality bond, the development of a baht-denominated bond market and the impact on Thailand’s financial market.