The Public Debt Management Office (PDMO) will offer its first amortised bond worth 5 billion baht to the elderly in late December to widen investment choices for retirees.
The amortised bond, which pays both principal and interest periodically, will carry a coupon rate of 2%, said Patricia Mongkhonvanit, director-general of the PDMO.
The five-year maturity bond will be sold to those aged 60 or above from Dec 23 to April 24, 2020 through PDMO's Bond Direct app and four selling agents, she said.
The four agents are Bangkok Bank, Siam Commercial Bank, Kasikornbank and Krungthai Bank.
A minimum subscription of 1,000 baht is required, while the ceiling is set at 2 million baht per sales agent.
Amortised bonds are a good choice for elderly people who want to earn income while getting back some principal for spending, Mrs Patricia said.
The amortised bond's interest is paid on a semi-annual basis, with principal payments starting from the second year.
Based on investment in the amortised bond of 1 million baht, bondholders will be paid principal of 200,000 baht per year between the second and the fifth year, with interest calculated based on the outstanding principal. Bondholders will obtain 60,000 baht in interest over five years.
Mrs Patricia said the PDMO plans to issue savings bonds worth 15 billion baht to the general public.
The savings bonds will be divided into two batches: a three-year maturity with a coupon rate of 1.70% and a seven-year maturity with a rate of 1.95%.
The subscription period is Dec 9-11 for those who hold a savings bond that is to due to expire on Dec 13, and Dec 13-April 24, 2020 for the general public.
A minimum of 1,000 baht per subscriber is needed, but there is no maximum restriction.
People can subscribe to the savings bonds through the Bond Direct app or the same four selling agents as the amortised bond.
To be eligible to buy the savings bond, subscribers must hold Thai nationality or reside in Thailand. The Thai Red Cross Society, foundations, temples, associations, state-owned education institutions, hospitals and non-profits are also eligible.
Earlier this year the PDMO offered three- and seven-year savings bonds with coupon rates of 2.46% and 3% respectively.