Kot bond market booklet q3 fy2014

Page 1

Kingdom of Thailand Bond Market

Financing Thailand’s Future & Connecting ASEAN

Highlights MOF awards 2013 & ILB Achievements Savings Bond & Money Expo 2014 Government Bond Auction Schedule Q3/FY2014 T-Bill Issuance Program

Progress Update Greenshoe Option: MOF Outright PDs Privilege in FY2015 Bond Switching & Consolidation Work Plan GGLB Rollover Plan Towards ASEAN “Preferred Destination”

Basic & Essentials • • • • •

Public Debt Outstanding and Its Composition Bond Market Capitalization and Its Composition Total GOVT Bond Supply Issuing in FY2014 Government Bond Auction Result in First Half of FY2014 Non-Resident Holding in Domestic Bond

Public Debt Management Office, Ministry of Finance, Kingdom of Thailand


Domestic Bond Market Development A. Highlights • • • •

MOF Awards 2013 & ILB Achievements

Savings Bond & Money Expo 2014 Government Bond Auction Schedule Q3/FY2014

1

T-Bill Issuance Program

B. Progress Update • • • •

Greenshoe Option : MOF Outright PDs Privilege in FY2015 Bond Switching & Consolidation Work Plan GGLB Rollover Plan Towards ASEAN “Preferred Destination”

12

C. Basic & Essentials • Public Debt Outstanding and Its Composition (As of Jan 2014)

= 5,466,198 THB Mil. (45.75% of GDP)

• Bond Market Capitalization and Its Composition (As of Mar 2014) = 9,202,573 THB Mil. (76% of GDP)

• Total GOVT Bond Supply Issuing in FY2014 • GOVT Bond Auction Result in First Half of FY2014 • Non-Resident Holding in Domestic Bond 

NR Holding in THB Bond (As of Mar 2014)

(GOVT Bond : 559,677 THB Mil., BOT Bond 118,713 THB Mil., Corp Bond : 747 THB Mil.) Net Change in NR Holding (Jan – Mar 2014) = -28,238 THB Mil.

= 679,137 THB Mil.

(GOVT Bond : Net Sell -36,164 THB Mil., BOT Bond : Net Buy +7,926 THB Mil.)

This booklet is produced and printed in-house by Bond Market Development Bureau Public Debt Management Office , Ministry of Finance, Kingdom of Thailand This booklet can be downloaded at www.pdmo.go.th

e-book

18


A: Highlights • MOF Awards 2013 & ILB Achievements • Savings Bond & Money Expo 2014 • Government Bond Auction Schedule Q3/FY2014 • T-Bill Issuance Program

1


MOF Awards 2013 Presented at Best Bond Awards 2013 on April 1, 2014 Organized by Thai Bond Market Association

Winner Runner Ups (In alphabetical order)

: Bangkok Bank Public Company Limited : Kasikorn Bank Public Company Limited : Krung Thai Bank Limited

(In descending order)

Winner Runner Ups (In alphabetical order)

: Deutsche Bank AG., Bangkok Branch : Bangkok Bank Public Company Limited : Citibank N.A.

(In descending order)

2

*Highest percentage share of allocation of all GOVT Bonds issued in FY2013 in the primary market. **Highest percentage share of trading of all GOVT Bonds issued in FY2013 in the secondary market . There are approximately 25-30 participants in the market.


MOF Awards 2013 Presented at Best Bond Awards 2013 on April 1, 2014 Organized by Thai Bond Market Association

Winners (Tied)

: Bangkok Bank Public Company Limited : The Hongkong and Shanghai Banking Corporation Limited

Bangkok Bank PCL.

Deutsche Bank AG., Bangkok Branch

The Hongkong and Shanghai Banking Corporation Limited

*** Highest scores voted by PDMO’s Executives

3


Looking Back @ ILB 

Innovation for sophisticated investors  Instrument to hedge against Asian Inflation  First and only ILB in ASEAN since 2011  Achievement awards Deal of the Year 2013 From Best Bond Awards 2013 (Thai Bond Market Association) (L) Dr. Prasarn Trairatvorakul, Governor, Bank of Thailand (R) Ms. Chularat Suteethorn, Director General Public Debt Management Office, Ministry of Finance 1 April, 2014

- Best Thailand Deal 2011 - Best Local Currency Bond 2011 From Finance Asia Achievement Awards 2011 Mr. Suwit Rojanavanich, Bond Market Advisor, PDMO, MOF 2 February, 2012 (Hong Kong) - Deal of the Year 2011 - Most Creative Issue 2011 From Best Bond Awards 2011 (Thai Bond Market Association) (L) Dr. Prasarn Trairatvorakul, Governor, Bank of Thailand (R) Dr. Pimpen Ladpli, Acting Executive Director, Bond Market Development Bureau 10 May, 2012 (Bangkok)

Best Sovereign Bond Deal of the Year 2013 in Southeast Asia At The 7th Annual Alpha Southeast Asia Deal and Solution Awards 2013 (R) Mr. Nattakarn Boonsri Director, Government Bond Market Development Division 23 January, 2014 (Kuala Lumpur)

4

• Best Sovereign Bond Deal of the Year 2013 in Southeast Asia

Thailand Capital Market Deal of the Year 2011

• Best Thailand Deal 2011 • Best Local Currency Bond 2011

Outstanding Issuer of the Year 2011

• Best Thailand Deal of the Year 2011 • Best Sovereign Bond of the Year 2011

The Most Impressive Local Currency Bond 2011

• Deal of the Year 2011 • Most Creative Issue 2011 • Deal of the Year 2013

Deal of the Year 2011


Looking Forward  Building up ILB283A to 100,000 MB  Enforcing market making responsibility as PDs’ duties  Possible issuance of 30yr ILB to extend ILB Yield Curve  Including in global indices (1.6% weight in Barclays EMGILB Ex-Argentina Ex-Columbia Constrained Index, as of April 2014)

To be issued in FY 2015

100,872MB* 5,000MB 5,000MB 5,000MB

To be issued by end of FY 2014

64,160MB*

TTM

ILB217A

ILB283A

7

14

To be launched in FY 2015-16

30

* Outstanding at the end of Q2/FY14

Thailand’s Inflation during the past 3 decades “Moderate & stable” (headline = 3.5% / core = 2.8%) (1985-2014 avg.)

Past 10 year avg.

3%

1.5%

Source : Bank of Thailand

5


MONEY EXPO 2014 “CONNECTING LIFE”

IMPACT CHALLENGER HALL 2 – 3 8th – 11th May 2014 Booth # M2

The Launch of

SAVINGS BOND* (SB175A) 3-year tenor

MONEY EXPO 2014 Impact Challenger Hall 2 – 3 8th – 11th May 2014 Public Debt Management Office Booth [M2] * Eligible for Individuals and Non-Profit Institutions such as foundations, Thai Red Cross Society, and the National Council on Social Welfare of Thailand

SAFE HAVEN

SAVINGS BOND 6


08

2545

Structure Shift‌ between Non-Resident and Retail Investor Holding in GOVT BOND THB Mil.

% Share of Government Bond

Non-Resident holding in Government Bond % Share of Government Bond Retail Investor holding in Government Bond % Share of Government Bond 29%

Savings Bond for FIDF

4%

Savings Bond for Deficit

16%

8% 424,311MB

483,839MB 381,796MB

366,490MB 255,675MB

Today

7%

Outstanding size

137,733MB

v v

25,000MB

1%

90,160MB

(End of Mar 2014)

-0-

31,577MB

-0-

Between FY 2002-2011 Average Savings Bond Outstanding is equivalent to 400,xxx THB Mil.

Savings Bond : The Safe Haven for Retail 09

The last series will expire in FY 2018

10

11 12 13 (Current Outstanding : 259,470 THB Mil. , 11 Series)

A FY2014 Expiration of SB 137,733 THB Mil. (53%) B FY2016 Expiration of 3 SB 90,160 THB Mil. (35%) C FY2018 Expiration of 1 SB 31,577 THB Mil. (12%)

Today 2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018 2561

334 MB

1. SB145A 2. SBST147A 80,000 MB 3. SB148A

43,303 MB 78 MB

4. SB148B 5. SB149A

10,821 MB

6. SB149B

459 MB

7. SB149B

2,738 MB

A 8. SB15NA 9. SBST166A 10. SB16DA

11. SB189A

3,930 MB

Zero

82,230 MB 4,000 MB

B 31,577 MB

C Bond Tenors

-0-


8

:

20,000

5,000

10,000

LB296A = LBA37DA = LB446A = LB616A =

LB196A = 2. LB = ILB283A =

Maturity Date

13-Jun-2019

(Re-open

16-Jun-2023

3.625%

(Re-open

(Re-open

(Re-open

12-Mar-2028

1.25%

22-Jun-2029

4.875%

(Re-open

(Re-open

(Re-open

12-Dec-2037

4.26%

29-Jun-2044

4.675%

)

17-Jun-2061

4.85%

3.875%

Coupon

113,000

18,000

9,000

40,000

Total

15,000

9,000

9,000

25-Jun-2014 16,000

-

20,000

18-Jun-2014

11-Jun-2014

16,000

9,000

28-May-2014

4-Jun-2014

-

15,000

14-May-2014

21-May-2014

-

7-May-2014

19,000

29-Apr-2014

9,000

Total

9,000

LB616A 50-yr

23-Apr-2014

15,000

LB446A 30-yr

-

10,000

25-yr

LBA37DA LBA37DA

16-Apr-2014

16,000

5,000

LB296A 15-yr

25,000

20,000

15-yr

ILB283A ILB283A

Amortized Bond

9-Apr-2014

LB236A 10-yr

Government Bond Auction Schedule for Q3/FY2014

-

5-yr

LB196A LB196A

Inflation-Linked Bond

2-Apr-2014

Auction Date

Exclusivity MOF Outright PD ONLY


Exclusivity

9


ACHIEVEMENTS PUBILC DEBT MANAGEMENT OFFICE INNOVATION INFLATION-LI NKED BOND PIONEER PDDF CGIF DEDICATION BENCHMARK BOND FISCAL DISCIP LINE COMMITMENT BOND MARKET DEVELOPMENT ACHIEVEMENTS PUBILC D EBT MANAGEMENT OFFICE INNOVATION INFLATION-LINKED BOND PIONEER PD DF CGIF DEDICATION BENCHMARK BOND FISCAL DISCIPLINE COMMITMENT B OND MARKET DEVELOPMENT ACHIEVEMENTS PUBILC DEBT MANAGEMENT OF FICE INNOVATION INFLATION-LINKED BOND PIONEER PDDF CGIF DEDICATION BE NCHMARK BOND FISCAL DISCIPLINE COMMITMENT BOND MARKETDEVELOPM ENT ACHIEVEMENTS PUBILC DEBT MANAGEMENT OFFICE INNOVATION INFLATIO N-LINKED BOND PIONEER PDDF CGIF DEDICATION BENCHMARK BOND FISCAL DI SCIPLINE COMMITMENT BOND MARKET DEVELOPMENT ACHIEVEMENTS PUBI LC DEBT MANAGEMENT OFFICE INNOVATION INFLATION-LINKED BOND PIONEER PDDF CGIF DEDICATION BENCHMARK BOND FISCAL DISCIPLINE COMMITMENT BOND MARKET DEVELOPMENT ACHIEVEMENTS PUBILC DEBT MANAGEMENT OF FICE INNOVATION INFLATION-LINKED BOND PIONEER PDDF CGIF DEDICATION BE NCHMARK BOND FISCAL DISCIPLINE COMMITMENT BOND MARKET DEVELOP MENT ACHIEVEMENTS PUBILC DEBT MANAGEMENT OFFICE INNOVATION INFLAT ION-LINKED-BOND PIONEER PDDF CGIF DEDICATION BENCHMARK BOND FISCAL DISCIPLINE COMMITMENT BOND MARKET DEVELOPMENT ACHIEVEMENTS PU BILC DEBT MANAGEMENT OFFICE INNOVATION INFLATION-LINKED BOND PIONE ER PDDF CGIF DEDICATION BENCHMARK BOND FISCAL DISCIPLINET COMMMITM ENT BOND MARKET DEVELOPMENT ACHIEVEMENTS PUBILC DEBT MANAGEMEN T OFFICE INNOVATION INFLATION-LINKED BOND PIONEER PDDF CGIF DEDICATIO N BENCHMARK BOND FISCAL DISCIPLINE COMMITMENT BOND MARKET DEVE LOPMENT ACHIEVEMENTS PUBILC DEBT MANAGEMENT OFFICE INNOVATION IN FLATION-LINKED-BOND PIONEER PDDF CGIF DEDICATION BENCHMARK BOND FI SCAL DISCIPLINE COMMITMENT BOND MARKET DEVELOPMENT ACHIEVEMEN TS PUBILC DEBT MANAGEMENT OFFICE INNOVATION INFLATION-LINKED BOND P IONEER PDDF CGIF DEDICATION BENCHMARK BOND FISCAL DISCIPLINE COMMM ITMENT BOND MARKET DEVELOPMENT ACHIEVEMENTS PUBILC DEBT MANAGE MENT OFFICE INNOVATION INFLATION-LINKED BOND PIONEER PDDF CGIF DEDI CATION BENCHMARK BOND FISCAL DISCIPLINE COMMITMENT BOND MARKET DEVELOPMENT ACHIEVEMENTS PUBILC DEBT MANAGEMENT OFFICE INNOVATIO N INFLATION-LINKED BOND PIONEER PDDF CGIF DEDICATION BENCHMARK BON D FISCAL DISCIPLINE COMMITMENT BOND MARKET DEVELOPMENT ACHIEVE MENTS PUBILC DEBT MANAGEMENT OFFICE INNOVATION INFLATION-LINKED-BO ND PIONEER PDDF CGIF DEDICATION BENCHMARK BOND ACHIEVEMENTS PUBIL C DEBT MANAGEMENT OFFICE INNOVATION INFLATION-LINKED BOND PIONEER PDDF CGIF DEDICATION BENCHMARK BOND FISCAL DISCIPLINE COMMITMENT BOND MARKET DEVELOPMENT ACHIEVEMENTS PUBILC DEBT MANAGEMENT OF 10FICE INNOVATION INFLATION-LINKED BOND PIONEER PDDF CGIF DEDICATION BE


 To Meet : Short Term Demand  To Manage : Funding Risk

T-Bill Supply

FY 2014

Public Debt Management Office, Ministry of Finance, Kingdom of Thailand

Basis Point

Allocated Participated

Million Baht

bps

Wednesday 7 May 2014

75,000 BCR 4.49 2.56

12

1M (32 Days) : 20,000 MB 3M (95 Days) : 20,000 MB

2.45

50,000

8 2.75

1.63

2.60

1.20

1.32

1.26 1.03

1.01

0.56

25,000

2.13

1.53

1.18 1.08

0.98

1.91 1.93 1.73

0.77

3M 20,000

2.42

1.45

2.60

1.79 1.58

4

1.07

1.02

20,000

1 M 20,000

20,000

20,000

20,000

20,000

20,000

20,000

20,000

15,000

15,000

15,000

15,000

15,000

15,000

15,000

0.6

15,000

15,000

15,000

15,000

15,000

0.4

15,000

1.3

1.27

20,000

20,000 20,000

20,000

19,275

25,000

24,491

25,000

25,000

25,000

25,000

25,000

14,006

25,000

25,000

25,000

27,135

1.15

T-1=0 -

0 -0.5

-0.8

-0.5 -1.0

-1.3 -1.8

-25,000 -3.9

-3.0 -3.5

-2.0

-2.2

-2.3 -2.9

-2.4

-2.5

-2.9 -3.3

-4.2-4.4 -4.6

-2.5

-2.9 -3.7

-3.9

Q3/FY14

-4

-4.6

-4.9

-5.2

-50,000

-8 Sep

Sep 13

Oct

Oct 13

Nov

Nov 13

Dec

Dec 14

Jan

Jan 14

Feb

Feb 14

Mar

Mar 14

Apr

Apr 14

May 14

May

Jun 14

11


B: Progress Update • • • •

12

Greenshoe Option: MOF Outright PDs Privilege in FY2015

Bond Switching & Consolidation Work Plan GGLB Rollover Plan Towards ASEAN “Preferred Destination”


Upgrade MOF Outright PD Privilege

Maintain

• Option

Exclusivity in 5-yr

Greenshoe Option

Public Debt Management Office, Ministry of Finance, Kingdom of Thailand

Cu r rent Pr ivilege FY 2013-20 14   

Exclusivity in 5-yr tenor of Government Benchmark Bond MOF Preferred Counterparty Quarterly dialogue with MOF of plan Bond Auction Schedule

 

BOT outright counterparty Benefit of Incentive program from SET

“Potential” Privilege to be launched in FY2015  Greenshoe Option

5 years 10 years

Greenshoe Option

Term and Condition:  Exercising at the AAY (Average Accepted Yield) Price  Exercising within 1-2 days next to the auction date (T+1 to T+2)

Right to buy indicated LB in Additional of 10-20% of the allocated amount

Survey Results for Upgrade MOF Outright PD Privilege (13/13PDs) Note: Under the normal market condition, PDs are expected to exercise Greenshoe option when Market Yield < AAY

1

13

5

12 11 10 9

3 2

Most Prefer

Least Prefer

7 6 7

8 7 6 5

4

4 3 2 1

GS 5 Yrs.

GS 10 Yrs.

2 2

Exclu. 10 Yrs.

GS 15 Yrs.

Exclu. 15 Yrs.

GS 7 Yrs.

GS 3 Yrs.

GS 30 Yrs.

Exclu. ILB

Exclu. 3 Yrs.

GS ILB

Results from All 13 MOF Outright PDs Between 27 Jan 2014 - 13 Feb 2014

1st Rank

Additional MOF Outright PD Privileges Survey 1. What is the most preferable Additional Privileges? Please Arrange 1-5 in Space By 1 = Most Prefer 3 = Prefer 5 = Least Prefer . . . . .

.Exclusivity in 10 yr. Benchmark Bond .Exclusivity in other Tenor of Benchmark Bond please specific yr. .Greenshoe Option in 5 yr. Benchmark Bond .Greenshoe Option 10 yr. Benchmark Bond .Greenshoe Option in other Tenor of Benchmark Bond please specific

2. Other Privileges

Greenshoe 5 Yrs

2 = More Prefer 4 = Less Prefer

Greenshoe 10 Yrs yr.

Exclusivity 10 Yrs

7 4 2

PDs

11

PDs

PDs

PDs

13


Bond Switching and Bond Consolidation Timeline Public Debt Management Office, Ministry of Finance, Kingdom of Thailand

FY2014 Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov Dec

Jan

FY2015 Feb Mar Apr May Jun

Jul

Aug

Week 4 : Kick-off

Examine the problem and obstacle • •

Gathering the Problem and Obstacle Planning to Eliminate

Meeting with Related Organization • • • • • • •

-Tentative-

The Revenue Department The Securities and Exchange Commission Federation of Accounting Professions Commission Office of Insurance Commission ThaiBMA BOT Others

Set Transaction Format • Bond Selection • Calculation • Exchange Approach

Marketing & Roadshow BS & BC Execution

18 Months

14


GGLB = BAAC = 100,000

75,000

Bonds of Bank for Agriculture and Agricultural Cooperatives. The principal and interest of the Bonds are guaranteed by the Ministry of Finance, and the Government of Thailand undertakes to make repayments of the principal and interest throughout of the Bonds in all respects Bonds of Bank for Agriculture and Agricultural Cooperatives. The principal and interest of the Bonds are guaranteed by the Ministry of Finance.

PA ST

Now BAAC148A BAAC14OA BAAC14OB BAAC152A BAAC152B BAAC152C BAAC153A BAAC156A BAAC156B BAAC157A BAAC157B BAAC157C BAAC159A BAAC159B BAAC159C BAAC15OA BAAC162A BAAC163A BAAC164A BAAC166A BAAC169A BAAC16OA GGLB16NA BAAC16NA BAAC172A BAAC179A BAAC189A BAAC189B BAAC192A BAAC192B BAAC208A BAAC238A BAAC238B

GGLB16NA Series 32 1

50,000

BAAC GGLB

69,580 THB Mil.

Outstanding (THB Mil.) 191,800 69,580

BAAC238A

BAAC238B

BAAC238B BAAC238B

BAAC192B

BAAC192A

BAAC189B

BAAC189A

BAAC179A

BAAC172A

GGLB16NA GGLB16NA

GGLB16NA

Series 13 20

BAAC GGLB

BAAC238A BAAC238A

50,000

BAAC16NA

BAAC16OA

BAAC169A

BAAC166A

BAAC164A

BAAC163A

BAAC162A

BAAC15OA

BAAC159C

BAAC159B

BAAC157C

BAAC159A

BAAC157B

BAAC156B

BAAC157A

BAAC156A

BAAC152C

BAAC153A

BAAC152B

BAAC152A

BAAC14OB

PRESENT

BAAC208A

75,000

BAAC208A BAAC208A

100,000

BAAC14OA

-

BAAC148A

25,000

Outstanding (THB Mil.) 20,000 240,380

69,580 THB Mil.

Roll Over

BAAC192A BAAC192A

BAAC192B BAAC192B

GGLB189A

BAAC189A BAAC189A

BAAC179A BAAC179A

BAAC172A BAAC172A

GGLB16NB

GGLB16NA

GGLB16OA

BAAC169A BAAC169A

GGLB166A

GGLB164A

GGLB163A

GGLB162A

GGLB15OA

GGLB159B

GGLB159A

BAAC159A

GGLB157C

GGLB157B

GGLB157A

GGLB156B

GGLB156A

GGLB153A

GGLB152A

BAAC152B BAAC152B

BAAC152A BAAC152A

GGLB14OA

GGLB148A

-

BAAC14OA BAAC14OA

25,000

29-Mar-14 GGLB148A BAAC14OA GGLB14OA BAAC152A BAAC152B GGLB152A GGLB153A GGLB156A GGLB156B GGLB157A GGLB157B GGLB157C BAAC159A GGLB159A GGLB159B GGLB15OA GGLB162A GGLB163A GGLB164A GGLB166A BAAC169A GGLB16OA GGLB16NA GGLB16NB BAAC172A BAAC179A BAAC189A GGLB189A BAAC192A BAAC192B BAAC208A BAAC238A BAAC238B

GGLB148A Parallel with SOE Bond Development As of 27 March 2014

Building a Benchmark Enhancing Liquidity Consulting Market

Issue Bond Under GGLB Code to be Benchmark for SOE Bond Re-open GGLB to Build-up Outstanding Size to Enhance Liquidity Publicize information in all dimensions. To Increase confidence in the market.

A

100,000

Coupon 3.53%

3-Yr Benchmark Bond (re-open) 7-Yr Benchmark Bond (new)

B

GGLB148A

C

GGLB189A

20,000 THB Mil.

Coupon 4.02%

GGLB2XXX Coupon .. %

BAAC192B

BAAC192A

GGLB189A

FY2017

BAAC189A BAAC189A

BAAC179A BAAC179A

BAAC172A BAAC172A

GGLB16NB

GGLB16NA

GGLB16OA

FY2016

BAAC169A BAAC169A

GGLB166A

GGLB164A

GGLB163A

GGLB162A

GGLB15OA

GGLB159B

GGLB159A

BAAC159A BAAC159A

FY2015

GGLB157C

GGLB157B

GGLB157A

GGLB156B

GGLB156A

GGLB153A

GGLB152A

BAAC152B

BAAC152A BAAC152A

GGLB14OA

-

BAAC14OA

25,000

BAAC238A

10 Aug 2014

FY2018-2023

BAAC238B

50,000

BAAC208A

75,000

GGLB16NA

Super Size

GGLB16NA

A B C

GGLB148A

มี.ค. 57 8A OA OA 2A 2B 2A 3A 6A 6B 7A 7B 7C 9A 9A 9B OA 2A 3A 4A 6A 9A OA NB NA 2A 9A 9A 9A 2A 2B 8A 8A 8B

Code Name Changed : Almost BAAC are in the scope of GGLB

15


Linking CGIF & BAHT BOND to the Development of Bond Market Public Debt Management Office, Ministry of Finance, Kingdom of Thailand

10,000

CGIF

9,000 8,000

150,000

Total Outstanding 9.2 THB Trillion

7,000 6,000

Baht Bond

5,000

(Foreign Issuers Bond)

2,850

4,000

BAHT BOND

End of March 2014

109,174

1%

THB mln. 100,000

(For Asian Bond 0.03% CGIF Market Initiative)

THB mln.

3,000 2,000 1,000

Corp Bond

22%

SOEs Bond

8%

50,000

0

2013 2014 2015 2016 2017 2018 2019 2020 0

2005 2006 2007 2008 2009 2010 2011 2012 2013 IBRD IBRD

KEXIM (30,700 m)

Natural Hedging

Inv’t Grade

BOT Bond

31% Hana

CABEI

(18,000 m)

AFD KDB

Woori

ING

Targeted Industry

GOVT Bond

38%

(13,000 m)

(10,000 m)

IBK

ADB (10,500 m)

Citi

(12,300 m)

(11,553 m)

Why now?

What next?

Thailand (PDMO) is a Board member  Set criteria  Select corporate

 Toward becoming regional hub  Increasing AAA Supply  Broadening Issuer Base : Lao PDR

(PDDF.)

Timeline For Baht Bond Application Process

Nov

Dec

SUBMISSION

CONSIDERATION

Jan

Feb

1

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Issuance Period 9 months (Jan - Sep)

SUBMISSION

CONSIDERATION

2

Issuance Period 9 months (May - Jan)

SUBMISSION

CONSIDERATION

3

Issuance Period 9 months (Sep - May)

SUBMISSION

CONSIDERATION

1

Issuance Period 9 months (Jan - Sep)

APPLICATION PROCESS: 3 rounds per year (9-mth issuance period for each round)

* The approval period is based on the fiscal period under Thai government law (October – September)

16


103,434 THB mln.

THE OUTSTANDING BAHT BOND Classified by issuers based on TTM

56% Due within Y2015 THB mln.

40,000

Hana

9%

(64,590 THB mln.)

32%

IBK

KDB

(9,600 THB mln.)

KEXIM

(36,690)

Woori AFD

21

35,000

CABEI

%

30,000

36%

24%

(13,040)

(27,900)

25,000

SEK

CA-CIB

19%

Woori

(22,409)

CA-CIB

70%

CBA Citi ENBD

(71,800 THB mln.)

ING SEK

ADB

KEXIM

ENBD Citi

20,000

(22,034 THB mln.)

IBRD

Lao PD

Noble

KEXIM

15,000

IBK

8%

KDB

10,000

(9,066)

3% Hana

5,000

3%

(3,874)

Hana

4% 2%

(5,000)

(3,000)

(2,235)

2%

1%

2%

(2,800)

(1,500)

(2,000)

IBRD

0

IFIs & ABMI

Korean Issuers

Others

Completely Due (as of March 2014)

Source: PDMO As of March 31st, 2014

Broadening Issuer’s “Qualification” to achieve “ASEAN Chosen Destination” Twin Inaugural 2004

IFIs

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2020

II

Credit Rating

IIIIIIIIIIIIIIIIIIII

SPV

-0-

Issuer’s Government Guarantee CGIF CGIF / Local Credit Rating

AAA

???

LAOS I I

NOBLE

Possible Next Step

COPORATE BOND MARKET CLASSIFICATION 300,000

BY CREDIT RATING

400,000

0

BY TTM 150,000

AA

A

BBB

BB

BY SECTOR

200,000

0

0 AAA

400,000

0–3

4–5

6 – 10

10+

ENERG BANK PROP FIN CONMAT FOOD TRANS PETRO COMM ICT AGRI SPV HELTH PAPER AUTO TOUR MEDIA ETRON

800,000

17


C: Basic & Essentials •

Public Debt Outstanding and Its Composition (As of Jan 2014)

= 5,466,198 THB Mil. (45.75% of GDP)

Bond Market Capitalization and Its Composition (As of Mar 2014)

= 9,202,573 THB Mil. (76% of GDP)

Total GOVT Bond Supply Issuing in FY2014

GOVT Bond Auction Result in First Half of FY2014

Non-Resident Holding in Domestic Bond

 NR Holding in THB Bond (As of Mar 2014)

= 679,137 THB Mil. (GOVT Bond : 559,677 THB Mil., BOT Bond 118,713 THB Mil., Corp Bond : 747 THB Mil.)

Net Change in NR Holding (Jan – Mar 2014)

= -28,238 THB Mil.

(GOVT Bond : Net Sell -36,164 THB Mil., BOT Bond : Net Buy +7,926 THB Mil.)

18


Public debt Outstanding (as of January 2014) = 5.47 THB Trillion (45.75% of GDP) Public Debt Management Office, Ministry of Finance, Kingdom of Thailand

Components of Public Debt

Units : THB Mil.

1. Government Debt (excluded FIDF) 2. Government Debt (for FIDF) 3. Non-Financial Sate Enterprise Debt 4. Special Financial Institutions Guaranteed Debt 5. Autonomous Agency Debt

2,731,161* 1,107,240 1,090,502 536,460 835

Public Debt Outstanding

5,466,198

Special Financial Institutions Guaranteed Debt

9.8

% 0.54 THB Trillion

Autonomous Agency Debt

0.02% 0.001 THB Trillion

*including 71,901 THB Mil. of External Debt

Non-Financial Sate Enterprise Debt

19.9% 1.09 THB Trillion

GOVT Debt 50.0% 2.73 THB Trillion

GOVT Debt (for FIDF)

20.3

% 1.11 THB Trillion

Source : Information Technology Centre, PDMO

Forecast Public Debt to GDP % of GDP 70%

61.7% 60.9%

60%

50%

40%

Sustainability Framework Public Debt to GDP < 60%

60.6% 56.9% 52.2% 50.6%

48.3%

51.0% 43.5%

35.6%

45.5% 41.7% 45.86% 42.6%

45.2% 39.6% 37.3%

Balance Budget

30%

20%

14.6% 9.12%

10%

10.87%

12.52%

11.54% 11.26%

12.61% 10.20%

4.84%

9.98%

7.41%

0%

Public Debt to GDP

Repayment Budget/Budget Expenditure

Source: Policy and Planning Bureau, as of 2 January 2014, Public Debt Management Office, Ministry of Finance

19


Full Capacity* of All Government Funding Instruments

1,150,000 THB Mil. per Year ($35 Bil.)**

* Under favorable market liquidity + using All funding instruments

Public Debt Management Office, Ministry of Finance, Kingdom of Thailand

%

LB 3 yrs LB 5 yrs LB 7 yrs LB 10 yrs LB 15 yrs LB 20 yrs LB 30 yrs LB 50 yrs

($4.6 Bil.)** ($4.0 Bil.) ($2.4 Bil.) ($2.4 Bil.) ($1.8 Bil.) ($1.8 Bil.) ($0.9 Bil.) ($0.6 Bil.)

150,000 THB Mil. 120,000 THB Mil. 80,000 THB Mil. 80,000 THB Mil. 60,000 THB Mil. 60,000 THB Mil. 30,000 THB Mil. 20,000 THB Mil.

Thailand’s Loan Bonds (LBs) weighting in international indices

GBI-EM Global JP Morgan

iBoxx Asia ex Japan Markit

7.7%

Asian Local Markets HSBC

7.8%

7.8%

Benchmark Bond

Last Update : Feb 2014

50

30 20 15 10 7

The “Missing Composition” of Leader role in the Bond Market

5

Government Funding Instruments Infrastructure

3

liquidity Benchmark Bond

($20.4 Bil.) ($3.5 Bil.) ($3.5 Bil.) ($2.8 Bil.)

Benchmark Bond

~600,000THB Mil. (52%)

Savings Bond

~100,000THB Mil. (8%)

Amortized Bond

~100,000THB Mil (8%)

Inflation-Linked Bond

~80,000THB Mil. (7%)

($1.4 Bil.) ($1.0 Bil.) ($7.0 Bil.)

Promissory Note

~40,000THB Mil. (4%)

Floating Rate Bond

~30,000THB Mil. (3%)

Bank Loan

($40 Bil.) Total

~200,000THB Mil. (18%)

1,150,000 THB Mil. (100%)

TTM (yrs.) Source: ThaiBMA Government Bond Yield Curve as of 31 March 2014

20

**Source: BOT Exchange rate as End of Mar 2014


 Average-Time-to-Maturity (ATM) = 8yrs 4mths  Average Cost = 4.19%  Fixed : Floating = 87 : 13 As of Jan 2014

Total GOVT Debt = 3.77* THB Trillion * Excluding 71,901 THB Mil. of Foreign Debt

Public Debt Management Office, Ministry of Finance, Kingdom of Thailand Assumptions : 6 months BIBOR = 2.47%, 6 months Fixed Deposit Rate = 1.79%, Inflation = 1.93%

FIDF 1

300,000

GOVT Debt (for FIDF) = 1,107,240 THB Mil.

128,000

200,000

 ATM  Avg. Cost  Fixed : Floating  Callable

FIDF 3

= 4yrs 7mths = 4.29% = 85: 15 = 13%

Maturity Profile

60%

35%

35,000 14,000

101,850

5%

39,000

69,000 40,000

101,800

37,900

75,000

68,441 39,836

25,000

27,887 58,440

141,963

64,124 40,000

100,000

0

Next 5 yrs

6-10 yrs

10 yrs +

TTM Fiscal Year

Budget Deficit

On-lending Loan

Water Decree

22,000

TKK

 Callable

41%

Next 5 yrs

6-10 yrs

10 yrs +

0

95,205

27,800

29,800

14,000

20,000

95,936

5,500

6,500

71,000

35,000 41,900

33,581

2,200

192,730

67,000

47,000

43,000

15,700

18,900 32,500

80,025

100,872

184,110

273,994

5,783

123,704

= 8% Maturity Profile 33% 26%

9,250 114,271

164,297

242,222

100,000

187,727

T-Bill

GOVT Direct Debt (exclude FIDF) = 2,659,260** THB Mil. 16,000

86,630

11,257 10,000

60,000 58,247

200,000

13,248

300,000

 ATM = 9yrs 10mths  Avg. Cost = 4.15%  Fixed : Floating = 88 : 12

TTM Fiscal Year

**Excluding 71,901 THB Mil. of Foreign Debt

(1) (2) (3) (4)

Well-Developed Bond Market Improved

GOV’T Direct Debt Profile Dramatically

ATM Lengthened Cost Lowered Well-Balanced Fixed-Float Ratio Well-Distributed Maturity Profile

Public Debt Management Office, Ministry of Finance, Kingdom of Thailand

Note : Government Direct Debt = 2.66 THB Million (exclude FIDF)

As of Dec 2007

Average-Time-to-Maturity LENGTHENED by 5 yrs

As of January 2014 ATM

9yrs 10mths ATM

5yrs 3mths Avg. cost

Avg. Cost LOWERED by 40 bps. (While ATM Lengthened by 5 yrs)

4.5%

Avg. cost

4.1% Floating

Well-Balanced Fixed/Floating Ratio (Target : Fixed/Float ratio = 80 : 20)

5441 % % Well-Distributed Maturity Profile

10%

Floating

Fixed

Fixed

90%

88%

28 26%%

33%

18%

41% 26%

12%

33%

(Maturing Debt in the next 5 yrs is less than 50% of Total Debt) next 5 yrs year - 6 -10

10 yrs +

next 5 yrs year 6 -10

10 yrs +

21


Bond Market Cap. = 9.2 THB Trillion

GOVT Bond = 3.4 THB Trillion ($107 Bil.)*

($283 Bil.)*

Public Debt Management Office, Ministry of Finance, Kingdom of Thailand

% Share of GDP

Domestic Bond Market Classified by Issuer

140% 128% 120%

Baht Bond

103%

100%

(For Asian Bond CGIF Market Initiative) 0.03%

101%

80%

1%

76%

60%

Corp Bond

22%

SOEs Bond

8%

BOT Bond

31%

24%

40%

Asian Fin. Crisis

20% 12% Mar 2014

0%

Bank Loan /GDP

Equity/GDP

2,835,122 THB Mil.

Bond Market / GDP

Maturity Profile BOT vs GOVT Bond BOT ATM = 8mths GOVT ATM = 8yrs 4mth

GOVT Bond 38% 3,492,013 THB Mil.

11% BOT 76%

17%

24%

17%

MOF 28%

27%

1<yr≤3

3<yr≤5

5<yr≤10

10<yr≤50

BOT Bond Supply Rose Dramatically (2004 – Mar 2014)

*Source: BOT Exchange rate as End of Mar 2014

End of Mar 2014

 Market share rose nearly… 3 Folds  Outstanding size rose by… 9 times Public Debt Management Office, Ministry of Finance, Kingdom of Thailand

60%

% Share of Domestic Bond Market

54%

(1,286,620 THB Mil.)

Domestic Bond Market 2014

38% GOVT

50%

40%

BOT 31%

30%

20%

Classified by Issuer Baht Bond CGIF

0.03%

Corp Bond

22%

SOEs Bond

8%

BOT Bond 2,835,122 THB Mil.

31%

Corp Bond 22%

GOVT Bond 10%

1%

(Foreign Issuers Bond)

13%

(312,340 THB Mil.)

SOEs Bond 8%

3,492,013 THB Mil.

38%

Baht Bond 1%

0%

Mar 2014

22

End of Mar 2014


FY2007 – FY2014

Innovation of GOVT Debt Securities Public Debt Management Office, Ministry of Finance, Kingdom of Thailand

• Lengthen average-time-to-maturity of Total Government Debt Portfolio • Meet Long-term investors’ demand

Floating Rate Bond

• Increase floating debt ratio of Total Government Debt Portfolio • Promote BIBOR (Bangkok Interbank Offered Rate)

Step-up Savings Bond

• Broaden investor base – Retail investors • Low interest burden at the initial periods of bond

Fixed Rate Promissory Note

• Broaden investor base – Insurance / Long-term investors • Non-Benchmark tenors

50-yr Benchmark Bond

• Combat low interest rate + Lengthen average time-to-maturity • 4th country in the world (1st : UK 2nd : France 3rd : China)

10-yr Inflation-Linked Bond (ILB)

• Strong anti-inflationary signal • Deepen the Development of the Bond market • 1st country in Emerging Asian Economies

Electronic Retail Savings Bond

• Lower Minimum Amount to Purchase / Offer throughout the year • Develop the retail bond into an electronic form  Scripless System • Can be purchased via ATM, in addition of Bank Retail Branches

Amortized Bond

• Suitable financing instrument for the government’s investment mega-project in the form of PPP • Pay back the bond principal by installments  Promote the government’s fiscal discipline

FY 2012-2014

FY 2011

FY 2007-10

30-yr Benchmark Bond

Bond Switching & Consolidation

• Allow both issuer and investors to improve their portfolio • Larger outstanding size + Less bond series  Enhance liquidity in the secondary market

PDDF Activated

Upgrade PD Privileges

(Public Debt Restructuring and Domestic Bond Market Development Fund)

15-yr ILB

CGIF Activated

Baht Bond

(Credit Guarantee and Investment Facility)

Equilibrium of Domestic Bond Market Public Debt Management Office, Ministry of Finance, Kingdom of Thailand

Issuers

• 77 percent of Thailand’s debt securities are issued by Government, Bank of Thailand and State-Owned Enterprises

Credit Rating

• 97 percent of Thailand’s debt securities are classified as Investment Grade

Investors

• Thailand’s government debt securities are held by a wide group of investor types

Domestic Bond Market (Classified by Issuers)

Domestic Bond Market (Classified by Credit Rating) BBB Non-rated 2% 3%

Baht Bond

CGIF 0.03%

Government Debt Securities (Classified by Types of Investors)

1% A

Corp Bond

8%

22%

AA 4%

Government

Government

38%

SOEs

8%

38%

SOEs 8%

BOT

BOT

31%

31%

Total of 9.2 THB Trillion

Source : ThaiBMA (End of Mar 2014)

Total of 9.2 THB Trillion

Source : ThaiBMA (End of Mar 2014)

NR 17% Household and Non-profit

BOT 6%% Insurance and Other Corporation

36%

7% Depository Corporation

33% 34 Total of 3.4 THB Trillion

Source : BOT (End of Feb 2014)

23


FY2008-FY2013 Key Success Indicators

1. 1. Trading Volume 2. Turnover Ratio 3. 3. Demand Concentration 4. Auction Price Public Debt Management Office, Ministry of Finance, Kingdom of Thailand

Benchmark Bond 5 yrs and Below : Highest secondary trading volume in every year Unit: % Share of Market Trading Volume

5-yr Benchmark Bond’s Higher Turnover Ratio : Even the higher outstanding size, turnover ratio is still more than 2 times Unit: Times

LB155A LB133A

9

29%

28%

27% 20%

LB145B

20%

7%

LB15DA

3.1

LB133A

21%

4.2

LB176A

2.8

2.4

1.5

4.2

LB196A

2.9

Top 10 GOVT Bond Series : Accounted for 90% of all GOVT bond trading volume in secondary market

Well-Developed Benchmark Bond Pays Off : Even with greater size of issuance, the cost of funding is still at market rate

Unit: % Share of Secondary Trading Volume

Unit: USD Bil. +0.9 bps

90% 90%

+3.2 bps

84% 75%

76% 77%

80%

+1.4 bps +1.2 bps

14.7

12.8

15.9

13.7

7.5 -0.4 bps

To be Updated

24

16.5

-0.2 bps


Tier 1 > 100,000 THB Mil. in Size (90% of Trading Volume)

(3,021,XXX THB Mil.)

Tier 2 > 50,000 THB Mil. in Size

(as of Q2/FY2014)

(8% of Trading Volume)

Public Debt Management Office, Ministry of Finance, Kingdom of Thailand

Tier 1: >100,000MB

THB Mil.

FY2014 Q2 Market Share of Trading Volume in Secondary Market Tier 2 Tier 1

(9 Series)

300,000

5

250,000

Outstanding size (THB Mil.)

90% 0

8% 2% 8% 50

100

200,000

Tier 2: 50,000 – 100,000MB

10

(15 Series)

150,000

50

LBA

100,000 100,000

25 15

ILB 15

50,000

LB267A LB24DA LB191A LB14DA LB175A LB25DA LB316A LB171A LB214A LB19DA LB157A LB244A LB22NA LB183A LB406A LB446A LB446A LB145A LB396A LB383A

LB416A LB183B LBA37DA LBA37DA LB296A LB296A LB17OA LB27DA LB193A LB213A LB326A ILB283A ILB283A LB283A LB16NA LB198A LB167A LB233A

0

LB196A LB196A LB176A LB21DA LB236A LB236A LB155A LB15DA LB145B LB616A LB616A ILB217A

30

FY 2014 on-the-run Benchmark Bond FY 2014 on-the-run Innovative Bond

Source : ThaiBMA

Well-Distributed Bond Maturity Profile (as of Q2/FY2014)

The outstanding size of loan bond maturing in the next 5 years is 1,069,019 THB Mil. (35% of Total GOVT Bond) Public Debt Management Office, Ministry of Finance, Kingdom of Thailand

THB Mil.

Current Outstanding Current Outstanding Current Outstanding

300,000

≥ THB 100 Bil. = THB 50-100 Bil. ≤ THB 50 Bil.

FY 2014 on-the-run Benchmark Bond

5

250,000

FY 2014 on-the-run Innovative Bond

200,000

10 150,000

50

LBA

100,000 100,000

ILB 15

25

15 50,000

1 Source : ThaiBMA

2

3

4

5

6 – 10 years

LB616A

LB244A LB24DA LB25DA LB267A LB27DA ILB283A ILB283A LB283A LB296A LB296A LB316A LB326A LBA37DA LBA37DA LB383A LB396A LB406A LB416A LB446A LB446A

TTM

LB191A LB193A LB196A LB198A LB19DA LB213A LB214A ILB217A LB21DA LB22NA LB233A LB236A LB236A

30

LB145A LB145B LB14DA LB155A LB157A LB15DA LB167A LB16NA LB171A LB175A LB176A LB17OA LB183A LB183B

LB21DA LB176A

Total GOVT Bond = 43 Series

11 – 50 years

25


FY 2014

610,xxx THB Mil.

Total Fund Raising Plan

Last Updated: March 2014

Public Debt Management Office, Ministry of Finance, Kingdom of Thailand

Water

Q: Will the “pause” of the

9,xxx  Savings Bond  Dollar Bond  Non-Benchmark  New Product

Bank Loan

Infrastructure

6 mths – 4 yrs

250,000 MB.

New Borrowing

(As of Sep 25th,2013)

250,000

A: No, they will not.

123,000

Savings Bond and Others

Deficit

Water Decree and Infrastructure Bill affect the Announced Government Bond Supply?

The Water Decree and Infrastructure Bill were planned to be raised through short-term “Bank Loan” which provide more flexibility and cost saving. Then, they will be converted to long-term instrument later.

55,000

Amortized Bond – 25 years Inflation Linked Bond

25,000

360,124 MB

Roll Over

Benchmark Bond (5 - 15 - 30 - 50-yr)

Rollover Govt Debt

231,000

Rollover FIDF Debt

278,000

129,124

Benchmark Bond (10-yr)

82,000

Promissory Notes

47,124

By Instruments

By Bills

FY 2014

Government Bond Supply

7 Fixed Coupon Bonds 5 Benchmark Bonds Series 1 Inflation-Linked Bond 1 Amortized Bond

Public Debt Management Office, Ministry of Finance, Kingdom of Thailand

FY 2014 Indicative Benchmark Bond Plan-to-issue Amount in FY 2014 Outstanding Amount as of the beginning of FY 2014

Super size 300,000MB

300,000

($10 Billion)

120,000

10

15-yr

25-yr

Inflation-Linked Bond

Amortized Bond

200,000

82,000

50

26

50,000 50,000 LB446A

30

81,205

54,000 LBA37DA

55,000

55,000 25,000 50,000 58,000 LB296A

ILB283A

115,850 LB236A

LB196A

0

181,994

15 100,000

LB616A

Outstanding size (THB Mil.)

5

D P L

Firm


FY 2014 Government Bond Auction Result

GOVT Bond Auction is decoupled from political situation

Classified by Quarterly Auction Schedule

: red

Public Debt Management Office, Ministry of Finance

5-10 yr Benchmark Bond Amortized Bond

13

Million Baht

15-30-50 yr Benchmark Bond Inflation-linked Bond

75,000

Basis Points

Basis Points

15

Dissolution of the parliament

10

50,000

6.3

5

25,000 3.9 3.2

2.9

10,000

12,000

2.7

T-1= 0-

20,000

7,000

5,000

13,000

5,000

0.8

5,000

20,000

8,000

12,000

9,000

4,160

10,000

20,000

9,000

13,000

16,000

LB5y

LB15y

LB50y

LB10y

LB30y

ILB15y

LB5y

LB50y

-25,000

LBA25y

LB15y

LB10y

LB30y

ILB15y

LB15y

-1.2

LB5y

LB50y

-5.4

-6.1

ution of ament

9,000

-0.2

-0.4 LBA25y

LB10y

0

LB30y

-5

-5.4 -7.0

Dec 13

-7.8

-8.3

-8.9

-50,000

-75,000

-10

-15

FY 2014 GOVT Bond Auction Results Classified by Tenor

A B

Q2/FY14

26 Mar 14

19 Mar 14

26 Feb 14

19 Feb 14

19 Feb 14

5 Feb 14

29 Jan 14

29 Jan 14

8 Jan 14

12 Feb 14

Q1/FY14

Dec 13

18 Dec 13

11 Dec 13

11 Dec 13

3 Dec 13

27 Nov 13

20 Nov 13

13 Nov 13

6 Nov 13

-15.0

6 Nov 13

MC : apered

-8.1

-9.6

ALL Benchmark Bond : Fully Allocated 30-to-50-yr Benchmark Bond : Avg.Accepted LOWER than Market Price Public Debt Management Office, Ministry of Finance

5-10 yr Benchmark Bond Million Baht

15-30-50 yr Benchmark Bond

Basis Points

Benchmark Bond 5 – 10yr

25,000

10yr

5yr

Basis Points

Benchmark Bond 15 – 50yr

15yr

30yr

15

50yr

(Exclusivity)

A

20,000

Fully Allocated

15,000

10

10,000 5 5,000

3.9

T-1= -0

20,000

20,000

20,000

13,000

12,000

16,000

7,000

10,000

10,000

5,000

9,000

9,000

5,000

8,000

9,000

0

-0.2

-0.4

-5,000

3.2

2.9

2.7

-1.2

B -5

-10,000 -6.1 -7.0

-15,000

-7.8 -8.9

-8.1

-8.3

-10

-9.6

-20,000

-25,000

-15.0

-15

27


Net Change in Non-Resident Holding (YTD) Net Outflow = -28,238 THB Mil.

BOT : Net Buy +7,926 MB. GOVT : Net Sell -36,164 MB.

Sell -26,727 MB. Buy +34,653 MB. Sell -48, 902MB. Buy +12,738 MB.

End of Mar 2014

THB Mil.

Non-resident Net Buy/Sell in BOT Bond Non-resident Net Buy/Sell in GOVT

-28,238 THB Mil. BOT

GOVT

BOT Bond

+7,926

0 -36,164 GOVT Bond

2014 YTD (End of Mar 2014)

2014 (The past 13 weeks)

End of Mar 2014

YTD in Non-resident Holding BOT Bond & GOVT Bond

THB Mil.

T

BOT Bond

+

+

+

+7,926 THB Mil.

+

0

GOVT Bond -36,164 THB Mil

.

2014 28


Peers Comparison

NR Holding in Thai GOVT Bond

End of Mar 2014

is 559,677 THB Mil. or 16% of Total GOVT Bond Outstanding

Relatively “moderate” share of NR holding by region average 40%

Percentage share of Non-resident Holding in Local Government Bond (Mar 2008 - Present)

Indonesia

32.54% Dec’ 13

Malaysia 29.4%

30%

Dec’ 13 Peak @ 19.1% (Apr’ 13)

20%

Thailand

Korea 9.5%

16%

End of Mar’ 14

Sep’13

10%

Japan 8.02% Dec’ 13

2008

2009

2010

2012

2011

Mar-14

Dec-13

Sep-13

Jun-13

Mar-13

Dec-12

Sep-12

Jun-12

Mar-12

Dec-11

Sep-11

Jun-11

Mar-11

Dec-10

Sep-10

Jun-10

Mar-10

Dec-09

Sep-09

Jun-09

Mar-09

Dec-08

Sep-08

Jun-08

Mar-08

0%

2013

2014

Source : AsianBondsOnline, ThaiBMA

2014 Outstanding

Non-resident Holding in THB Bond = 679,137 THB Mil. (7.38% of Thai Bond Market Capitalization)

(% share of Bond Market)

Thai Bond Market Cap. = 9,202,573

THB Mil. Classified by Issuer (End of March 2014)

Non-Resident Holding (THB Million)

Issuer

End of Mar 2014

% Share of Thai Bond Market Cap. (9,202,573 THB Million)

GOVT Bond

559,677

6.08%

1%

BOT Bond

118,713

1.29%

CGIF Market Initiative) 0.03%

SOE Bond

0

Baht Bond (Foreign Issuers Bond) (For Asian Bond

Corp Bond

747

22%

SOEs Bond

8%

GOVT Bond Outstanding 3,492,013

31%

7.38%

BOT Bond Outstanding 2,835,122

THB Mil.

Non-Resident 559,677 THB Mil.

BOT Bond

0.01%

679,137

TOTAL

Corp Bond

0%

THB Mil.

Non-Resident 118,713 THB Mil. %

%

2,835,122 THB Mil. GOVT Bond

38%

Domestic Investors 2,932,336 THB Mil.

84

%

3,492,013 THB Mil.

Domestic Investors 2,716,409 THB Mil.

95.8

%

29


Chularat Suteethorn Director-General, Public Debt Management Office Suwit Rojanavanich Bond Market Advisor Bond Market Development Bureau, Public Debt Management Office Ministry of Finance, Kingdom of Thailand

For Further Information : Pimpen Ladpli

+66 2271 7999 ext. 5802

pimpen@pdmo.go.th

Senior Expert on Bond Market Development Acting Executive Director of Bond Market Development Bureau

Nattakarn Boonsri

+66 2271 7999 ext. 5803

nattakarn@pdmo.go.th

Director of Government Bond Market Development Division

Sophida Sritomya

+66 2271 7999 ext. 5804

sophida@pdmo.go.th

Director of Fund Management and Bond Market Infrastructure Development Division

Nakarin Prompat

+66 2271 7999 ext. 5812

nakarin@pdmo.go.th

Acting Director of International Bond Market Policy Division

Chakrit Phothisuk

+66 2271 7999 ext. 5811

chakrit@pdmo.go.th

+66 2271 7999 ext. 5806

kasirat@pdmo.go.th

+66 2271 7999 ext. 5816

phimonphan@pdmo.go.th

+66 2271 7999 ext. 5809

kittiya@pdmo.go.th

+66 2271 7999 ext. 5818

chanikarn@pdmo.go.th

+66 2271 7999 ext. 5801

pathida@pdmo.go.th

Economist

Kasirat Suwanpen Economist

Phimonphan Tanwattana Economist

Kittiya Chaithep Economist

Chanikarn Chaiyasena Economist

Pathida Rattanapinyo Economist

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