PDMO prepares last batch of state savings bonds
The Public Debt Management Office (PDMO) will offer the final batch of government savings bonds for this year, valued at 55 billion baht, beginning on June 13, said the office's director-general Patricia Mongkhonvanit.
The launch is part of the PDMO's offer of total savings bonds worth 165 billion baht in fiscal 2022, an increase of 15 billion baht on its original plan, to cater to the higher demand of investors.
The final batch of savings bonds issued this year carry terms of five and 10 years and with improved interest rates.
The first tranche worth 10 billion baht will be available to individual investors on the "Sasom Bond Mung Kung" ("Sor Bor Mor") e-wallet on Krungthai Bank's Pao Tang mobile app. They will be up for grabs during June 13-30.
Of the total, the lot with a five-year term offers an improved interest rate of an average 2.9% per year, while the lot with a 10-year term offers an improved rate of average 3.60% per year. Interest is paid every three months.
The second tranche, worth 45 billion baht, will be sold to individuals and also non-profit organisations through four dealer banks -- Krungthai Bank, Bangkok Bank, Kasikornbank and Siam Commercial Bank.
The offer is divided into two periods, beginning with sales to individuals and later to non-profit organisations.
For the first period, covering June 15-19, bonds worth 40 billion baht will be available to individual investors. They can buy up to the limit of 10 million baht.
The lot with a five-year term carries an interest rate of 2.9% per year on average, while the lot that has a 10-year term offers an enhanced rate of 3.6% on average.
Interest is paid every three months. These bonds will be on offer at the four dealer banks' counters and their internet banking service and mobile banking apps.
During the second period -- from June 20-30 -- bonds valued at five billion baht will be on offer to individual investors and non profit organisations.
They carry a 10-year term and an improved interest rate of 3.3% per year on average. Interest is paid every six months.
These bonds will be on offer at the four dealer banks' counters and their internet banking service and mobile banking apps.
Investors can invest in the bonds via the "Sasom Bond Mung Kung" e-wallet as well as the four dealer banks.
Mrs Patricia said it is possible that the PDMO will offer a total of bonds overall valued at 1.1 trillion baht in fiscal 2022 versus the plan to launch 1.1-1.3 trillion baht of bonds, so the goverment bonds will not be in an oversupply in the market.
As of March, public debt stood at 9.95 trillion baht, representing 60.5% of GDP. If the government borrows as planned, debt will surge to 61.4% at the end of 2022.
The debt is expected to rise to 62.4% of GDP in fiscal 2023 from the government's plan to borrow to offset the budget deficit and from the government's guarantee of state enterprises' borrowing.
- government savings bonds