Government savings bonds worth a total value of 10 billion baht, which were on offer on Krungthai Bank's (KTB) Pao Tang mobile application, were fully subscribed to within less than three hours on the first day of subscriptions on Monday.
KTB president, Payong Srivanich, said that investors provided an overwhelming response to the bonds, resulting in them being sold out by 11.15am after subscriptions opened at 8.30am.
The 10 billion baht bond offering was part of a total valued at 50 billion baht the Public Debt Management Office is issuing under the name "Ying Aom Ying Dai" (the more you save, the more you earn), aiming to use the funds to finance state projects to ease the impact of the pandemic.
The bonds are available via two channels -- the "Sasom Bond Mung Kung" e-wallet, abbreviated as "Sor Bor Mor" in Thai on KTB's Pao Tang mobile app and through four dealer banks.
The bonds were available via the e-wallet for a three-year term. They offer a step-up on annual interest rates with an average of 1.80%. Investors could buy a minimum value of 100 baht up to 10 million baht.
The remaining 40 billion baht will be distributed between July 12-23 through the four dealer banks -- KTB, Bangkok Bank, Kasikornbank and Siam Commercial Bank. Investors are able to subscribe for bonds at counters, via internet banking, or through mobile banking apps.
The minimum for these bonds is 1,000 baht without a maximum limit. Interest is paid twice per year.
PDMO is splitting the bonds made available via banks into two tranches. The first tranche of 35 billion baht is for individual investors and carries a four-year term, with a step-up average interest of 1.90% per year.
The second tranche of 5 billion baht is for non-profit organisations. The 10-year bonds offer a fixed annual interest rate of 2.20%.