The government will sell savings bonds worth 100 billion baht within the fiscal year, with the first issue worth 40 billion baht to be offered next month to help finance the budget deficit, says Patchara Anuntasilpa, director-general of the Public Debt Management Office (PDMO).
Ms Patchara said the PDMO will launch the first tranche of savings bonds in fiscal 2024 worth 40 billion baht via two channels, namely the Pao Tang application and commercial banks.
Interested members of the public can download the Pao Tang app to register and either deposit money to PDMO's digital wallet via mobile banking or deposit money at any Krungthai Bank using wallet ID.
Another option is to buy directly at commercial banks, including Krungthai Bank, Bangkok Bank, Kasikorn Bank and Siam Commercial Bank.
The first lot (March 11-13) will be opened to Thai nationals aged 15 and older. The bonds (worth 35 billion baht) have a maturity of five and 10 years, with a coupon of 3% per year and 3.4% per year, respectively. Interest will be paid every three months. With a price of 100 baht per unit, the minimum purchase amount is 1,000 baht, with no limit on the maximum purchase amount.
The order of purchase date will not affect bond allocation as it will be randomly allocated. The buyer will know the results of bond allocation on March 14 and will receive their money back in the event that bonds are either not being fully allocated or partially allocated.
The second lot (March 18-19) will be opened to foundations, associations, cooperatives, temples, public educational institutions, public hospitals, condominium and housing juristic persons and other non-profit juristic persons. The bonds (worth 5 billion baht) have a maturity of 10 years and a coupon of 3% per year. Interest will be paid semiannually. With a price of 100 baht per unit, the minimum purchase is 1,000 baht, with no limit on the maximum purchase amount.
However, the amount sold on the PDMO's digital wallet and commercial banks will be separated. Investors can invest in both channels. Those interested can study additional details from the prospectus or obtain further information from the four commercial banks.
Outstanding government savings bonds, excluding this planned sale of 40 billion baht, tallied 620 billion baht.
The PDMO said the 5-year and 10-year maturity is appropriate as the majority of buyers are elderly.