The Public Debt Management Office (PDMO) plans to offer government savings bonds worth 40 billion baht next month, according to deputy director-general Jindarat Viriyataveekul.
The first tranche of bonds worth 10 billion baht is available for Thai individual investors on a first come, first served basis during May 10-23. This tranche is available on the "Sasom Bond Mung Kung" (Sor Bor Mor) e-wallet on Krungthai Bank's Pao Tang mobile app.
The seven-year bonds carry a fixed interest rate of 2.70% per year. The interest is paid every three months. Investors can purchase bonds worth 100 baht up to 20 million baht.
The remaining bonds worth 30 billion baht are available through dealer banks comprising Krungthai Bank, Bangkok Bank, Kasikornbank and Siam Commercial Bank.
This offering is divided into two periods. In the first period, a batch of bonds worth 25 billion baht is available to Thai individuals during May 15-17. The seven-year bonds carry a fixed interest rate of 2.70% per year. Interest is paid every three months.
The bonds are available via a small lot first method and buyers can subscribe for a minimum of 1,000 baht, with no maximum subscription limit.
Bonds worth 1,000 baht will be allocated to each of the buyers in the first allocation round, according to PDMO. If there are still bonds left over, the system will allocate additional bonds worth 1,000 baht to buyers in the following rounds.
The allocation rounds continue until the bonds are sold out. This method means not all subscribers will receive all the bonds for which they bought subscriptions, said the office.
Individuals can invest via mobile banking apps of the four dealer banks or at their counters.
For the second period, the remaining bonds worth 5 billion baht will be offered to non-profit organisations during May 22-23 at the dealer banks' counters, according to PDMO. They carry a term of 10 years with a fixed interest rate of 2.60% per year. Interest is paid every six months.
The minimum subscription value is 1,000 baht, with no maximum limit. They are available on a first come, first served basis.
In December 2022, PDMO offered savings bonds worth 60 billion baht. The three-year bonds carry an annual interest rate of 2.30%.