Corporate debenture registrations jump this year
Corporate debentures registered in the first half of this year was Bt390.97 billion compared to Bt135.44 billion for the whole of 2005 - thanks to a new regulation.
Since January the Securities and Exchange Commission has allowed only bonds and debentures registered with the Thai Bond Market Association (ThaiBMA) to be traded in the secondary market. The registration deadline for bills of exchange has been extended until July next year.The enforcement of the rule resulted in Bt265 billion of existing commercial paper piling up on the registration list this year. Also, Siam Cement's Bt56-billion existing debentures have helped increase the corporate bond size, which left only around Bt70 billion in private sector bonds that were registered as new issues. According to ThaiBMA data, the private sector last year issued bonds worth around Bt60 billion in the first half and Bt135.44 billion for the whole year. ThaiBMA vice president Parinya Disorntetiwat said most of the debentures issued so far this year had terms of about three years. "Although the country is enveloped in negative factors like high oil prices and interest rates, business must go on. However, for the sake of financial safety, most companies preferred to issue short-term bonds," he said. The first half of this year saw 1,052 issues worth Bt1.45 trillion. Government bonds dominated the new issue market with a value of Bt1.03 trillion. The total value of outstanding bonds stood at Bt3.57 trillion at the end of last month. - Piyarat Setthasiriphaiboon, The Nation
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