Long-term corporate bond issuance will likely reach 1 trillion baht this year as the private sector seeks funds to expand business and enhance liquidity, according to the Thai Bond Market Association (TBMA).
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TBMA upgrades bond issuance outlook to B900bn
published : 9 Jul 2021 at 09:00
The Thai Bond Market Association (TBMA) upgraded its projection for corporate bond issuance this year to 900 billion baht from 700-750 billion as private companies seek to replenish capital reserves amid economic uncertainties, says TBMA president Tada Phutthitada.
The value of corporate bond issuance in the first half stood at 552 billion baht, up 63% compared with the same period last year, with the value in the second half projected to exceed 400 billion. The third wave of the pandemic has not affected long-term corporate bonds, with the issuance value steadily increasing each month since April, Mr Tada said.
The Thai Bond Market Association (TBMA) expects the policy interest rate will remain at 0.5% throughout 2021, while issuance of new long-term corporate bonds is projected at 700-750 billion baht as the real sector turns to bank loans, says TBMA president Tada Phutthitada.
Mr Tada said the key concern for businesses is their inability to access funding sources, not a lack of liquidity that can be eased by policy rate adjustments. The country s liquidity is sufficient to finance the government s megaprojects. We expect no more foreign capital inflows to the bond market this year, he said. We expect some additional outflows as investors move to other assets that offer higher returns.