The Finance Ministry is quoting coupon rates of 3-6 per cent per annum for the Bt100-billion savings-bond issue available from May 17-21.
Bondholders will be eligible for 3 per cent in the first two years. The coupon rate will then rise to 4 per cent for the next two years, 5 per cent for the fifth year and 6 per cent for the final year.
The bonds will first be made available to the elderly aged 60 and above, with a minimum subscription of Bt10,000 and a maximum of Bt100,000. More than 120,000 investors are expected.
"This will be the second round of the Thai Khemkhaeng savings bonds and the highest value since 2002. It is being issued to accumulate funds for use in the TKK stimulus programme, helping increase the country's competitiveness in the areas of public health, education and water-resource management, among others," said Finance Minister Korn Chatikavanij.
The elderly will have first crack at them because they are the most sensitive to interest rates.
Korn yesterday signed contracts with 12 financial institutions for the bond offering.
Bangkok Bank won the largest chunk, Bt20 billion, with the rest split among Krung Thai Bank, Kasikornbank, Siam Commercial Bank, Bank of Ayudhya, the Government Savings Bank, Thai Military Bank, Siam City Bank, Thanachart Bank, UOB Bank Thai, CIMB Bank Thai and Citibank.