Bangkok Post Friday 06 May 2005 - New B5bn issue planned for June

リンク: Bangkok Post Friday 06 May 2005 - New B5bn issue planned for June.

New B5bn issue planned for June

WICHIT CHANTANUSORNSIRI
The Finance Ministry plans to issue five billion baht in public savings bonds next month, possibly followed by further issues of up to 90 billion by the end of the year.

Funds raised from the savings bonds, the first issue of 2005, would be used to refinance obligations of the Financial Institutions Development Fund, a unit of the Bank of Thailand that incurred hundreds of billions of baht in debt from the support of ailing banks and finance companies during the 1997 crisis.

Final details on the new issue will be settled on May 10 before a formal public announcement is made.

Individuals will be able to purchase between 20,000 and 500,000 baht worth of the bonds, to be offered with five- and seven-year maturities.

Tax liability on interest earned from the bonds will be waived for individual investors, although juristic persons purchasing the bonds will remain liable for a 15% tax on interest.

The coupon rates on the bonds have yet to be finalised, but will certainly be at a premium to current savings deposit rates to help draw investors.

The Government Savings Bank will be the sales agent and underwriter for the issue.

One key condition for the issue is that tax waivers will only be given%2