KOT Bond Market Booklet Q4

KINGDOM OF THAILAND BOND MARKET FINANCING THAILAND’S FUTURE & CONNECTING ASEAN

Q4/FY2016

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

Basic & Essentials

» Committing to FY2016 Fund Raising Plan » T-Bill Plan Q4/FY2016 » GOVT Bond Auction Results » GOVT Bond Auction Schedule Q4/FY2016 » SOE Bond Auction Schedule Q4/FY2016 » PDMO Bond Calendar FY2016

» Bond Market Development Strategy » Public Debt Outstanding and Its Composition » Total Domestic Public Debt » Bond Market Capitalization and Its Composition » Supporting Inclusive Growth Through ASEAN Bond Market Integration » Non-Resident Holding in Domestic Bond

Quick Facts Public Debt Outstanding (as of April 2016)

14

6,050,596 THB Mil. (44.09% of GDP)

Well-Developed Bond Market Improved GOVT Direct Debt Profile Dramatically (as of April 2016) » Average-Time-to-Maturity (ATM) 11yrs 4mths » Average Cost 3.84% » Well-Balanced Fixed : Floating Ratio 88 : 12 » Well-Distributed Maturity Profile 38:19:43 (TTM<5 : 6-10 : >10yrs)

15

Bond Market Capitalization (as of June 2016)

16

10,399,964 THB Mil. (75% of GDP)     

GOVT Bond 38% of total Bond Market outstanding BOT Bond 29% SOEs Bond 8% Corp Bond 24% Baht Bond 1%

Baht Bond Outstanding and its Market Share (as of June 2016)

67,499 THB Mil. (1% of Bond Outstanding)

19

Non-Resident Holding in Domestic Bond (as of June 2016) » Annual Capital Flow (YTD)  GOVT Bond :

147,556 THB Mil.

22

 BOT Bond :

» NR Holding in THB Bond  GOVT Bond :  BOT Bond :  Others :

16,950 THB Mil. 130,606 THB Mil.

720,495 THB Mil. (6.9% of Thai Bond Market Cap.) 571,482 THB Mil. (14.6% of GOVT Bond Outstanding) 148,077 THB Mil. (4.9% of BOT Bond Outstanding) 936 THB Mil.

Progress Update  Total Fund Raising Plan FY2016  T-Bills Plan Q4/FY2016  GOVT Bond Auction Results  GOVT Bond Auction Schedule Q4 /FY2016

 SOE Bond Auction Schedule Q4/FY2016  PDMO Bond Calendar FY2016

1

2

2016 - 2022

Government Funding Needs

700 - 950 THB Bil. per Year

In

873,xxx THB mil.

86MB

New Borrowing

350 - 450 THB Bil. Per year

2,XXXMB

3XXMB

4,XXXMB

38,XXXMB

59,XXXMB

38,XXXMB

Deficit Bill

Insurance Decree Substitution for foreign currency bond On-Lending

390,000

58,940

(2016-2022)

200,666

344,084

300,000

250,000

250,000

390,000

390,000

390,000

390,000

390,000

453,367

114,286

112,708

GOVT 140,192

Rollover 350 - 500 THB Bil. Per year

Bond Switching

252,898 15,000

50,000

52,000

(2016-2022)

50,000

-0-

149,209

231,000

307,945

187,898

162,713

177,545

FIDF

FY 2016

113,014

340,122

191,095

129,124

59,374

104,236

256,981

102,059

101,800

37,900

109,000

FY2011

FY2012

FY2013

FY2014

FY2015F

FY2016

FY2017F

FY2018F

FY2019F

FY2020F

FY2021F

FY2016

-Tentative-

Insurance Decree

466,XXX MB

-0FY2022F

873,XXX MB

Total GOVT Fund Raising Plan

“Revised” New Borrowing

286,104

3xx

Substitution for Foreign Currency On-lending

Deficit

38,xxx 38,xxx

390,xxx

Promissory Notes and Others

Saving Bonds

70,xxx

Bond Switching (LB176A)

50,xxx

Bond Supply (Uncommitted)

Roll Over 407,XXX MB

Benchmark Bond (Committed) Debt Refinance (Bond Switching) Water and Road Refinance MRTA Debt Refinance

50,xxx 50,xxx 15,xxx

Rollover Govt Debt

188,xxx

Rollover FIDF Debt

104,xxx

By bills

Loan Bond 5-10-15-20-30-50 yrs

518,xxx

By Instruments

518,XXX MB

FY2016 GOVT Fund Raising Plan = 902,xxx MB

Demand – Tools – Liquidity

THB mil.

148%

Liquidity 1,390,000MB

128% 1,500,000

Tools

113%

Demand

100%

873,xxx

1,250,000MB Fx Bond

1,055,200MB MB

50,000

TL

Co-op & Non-profit 51,600

1,000,000

200,000

Existing Liquidity

PN 70,000 Mutual Fund

ILB 80,000

(from maturing debt)

250,400

675,000

LBA 100,000 SB 100,000

500,000

0

Insurance & GPF & SSO

Issuing New Debt

LB

298,200

466,000

New Liquidity

Rollover of Maturing Debt 407,000

Household Deposit 455,000

650,000

715,000

Rollover + Deficit + Repayment + Bond Switching

New Demand for Fixed-income investment

Full Capacity of GOVT Funding Instruments

Liquidity for GOVT & SOE Borrowing

ThaiBMA

PDMO

Estimated by :

(from econ. growth)

BOT

(June 2015)

(July 2015)

Benchmark Bond Supply has remained unchanged for two years THB mil.

17% increase in FY2016

Amount of Benchmark Bond to Actual Fund Raising (FY2009 – FY2016) Benchmark Bond

Others

1,000,000

750,000

-11%

1%

17%

37% 2%

500,000

10% 49%

250,000

0

3

ALL FY2016

Benchmark Bond is approximately 518 Bil.

59% of FY2016 Funding Needs 873 Bil.

THB Mil.

500,000

400,000

Benchmark Bond New in Q4 Auction Size

Tenors

OLD

5-yrs 10-yrs 15-yrs 20-yrs 30-yrs 50-yrs

LB206A LB25DA LB296A LB366A LB446A LB666A

LB226A LB26DA LB316A LB466A -

Total

20,000 – 30,000 15,000 – 16,000 14,000 – 16,000 518,000Mil. 10,000 – 14,000 10,000 – 12,000 10,000 – 13,000

Total Benchmark Bonds

518,xxx MB

300,000

15 10

Top-up in Q4

FY2016

-

New-Issue in Q4

20

-

50

30

-

-

LB666A LB666A

LB446A LB446A ILB353A

15

10

LBA37DA LB383A LB396A LB406A LB416A

New-Issue in Q4

20

LB366A LB366A

New-Issue in Q4

5

TTM

30

ILB353A

0

10

LB15DA LBF165A LB167A LB16NA LB171A LB175A LB176A LB17OA LB183A LB183B LB191A LB193A LB196A LB198A LB19DA LB206A LB206A LB213A LB214A ILB217A LB21DA LB226A LB226A LB22NA LB233A LB236A LB244A LB24DA LB25DA LB25DA LB267A LB26DA LB26DA LB27DA ILB283A LB283A LB296A LB296A

100,000

30

15

LB616A

5

LB466A LB466A

5

LB316A LB316A LB326A

200,000

-

50

 Low Cost of Funding  High Volume of Short-term Demand

T-Bill Auction Result

Basis Points

THB Mil. 75,000

10

Q1

60,000

Q3

Q2

Q4 8

45,000 5 30,000 T-bill 3m 15,000

T-1= 00

0.7 -0.4

-0.6 -0.8

-1.2

-15,000

0.9 0.4 0.2 0.1 0.00.1 -0.2 -0.6 -0.9 -1.0 -2.4 -2.1 -2.5

-30,000

-1.9 -1.8 -1.9 -2.0 -2.3 -2.6 -2.7 -3.2 -3.8

-2.6

-3.1

-60,000

-5.5

-1.5 -1.7

-1.5 -1.6

-2.5 -3.0

-1.8 -2.3

-1.5

-3 -2.6

-5

-4.3

-4.4 -5.0

-4.9 -5.2 -5.4

0

0.6 0.3

0.2

-4.4

-45,000

3

2.4

-5.0 -5.4

-8

T-bill 3 month T-bill 6 months R-bill 3/6 months

T-bill (Allocated Amount) Participated Amount (Excess Demand) Spread [AAY-Yield(T-1)]

-8.4

-75,000

-10 Oct-15

4

Nov-15

Dec-15

Jan-16

Feb-16

Mar-16

Apr-16

May-16

Jun-16

Jul-16

Aug-16

Sep-16

Q3FY2015-Present GOVT Bond Auction Results Classified by Auction Schedule Short-term Benchmark Bond (<10 yrs) Long-term Benchmark Bond (>10 yrs) Inflation-linked Bond Amortized Bond

Participated Amount (Excess Demand) Spread [AAY-Yield (T-1)]

THB Mil. 120,000

Basis Points 30

FY2015

100,000 80,000

40,000

20 66,409

64,588

60,475

58,919

8.2

17,845 10,060 8,563

2.7

T-1= 00

1.7

0.5

0.4

-1.0 -2.4

16,190 14,330

11,920

16,807 17,409 16,764

17,890 17,923 13,893

5

4.6 2.9

-0.1 0.2

0

0.2 -2.2 -1.9-1.9 -2.6

-2.8

-2.4

-1.2

-2.1

-2.7

-4.0

-5.2

-5.3

-6.4

33,860 25,693 24,270 24,915 21,700

4.4

-0.5

-0.8

-4.1 -6.1

-40,000

-0.4

-2.7

-3.4

24,420 22,472 21,525 15,895 19,829 16,761 15,407

21,145 24,909 19,580 16,555 14,365 15,650 13,200 11,800 5.4 10,120 4,775

0.2

-20,000

10

37,355 29,850

28,602 15,438 15,480 15,250

15

52,335

36,610

3,496

25

81,300

75,696

60,000

20,000

FY2016

96,320

-5

-3.2

-5.8

-6.4 -6.2

-10

-7.8

-7.9 -9.4

-9.9

-11.2

-11.3

-60,000

-15 -16.5

-80,000

-17.7

-18.8

-20

-19.9

-100,000

-25 -30

29-Jun-2016

22-Jun-2016

15-Jun-2016

8-Jun-2016

15-Jun-2016

27-Apr-2016

18-May-2016

5-Apr-2016

20-Apr-2016

5-Apr-2016

30-Mar-2016

9-Mar-2016

16-Mar-2016

2-Mar-2016

17-Feb-2016

27-Jan-2016

10-Feb-2016

20-Jan-2016

6-Jan-2016

13-Jan-2016

8-Dec-2015

23-Dec-2015

2-Dec-2015

25-Nov-2015

18-Nov-2015

28-Oct-2015

11-Nov-2015

21-Oct-2015

21-Oct-2015

9-Sep-2015

23-Sep-2015

2-Sep-2015

2-Sep-2015

26-Aug-2015

19-Aug-2015

28-Jul-2015

11-Aug-2015

8-Jul-2015

15-Jul-2015

8-Jul-2015

3-Jun-2015

24-Jun-2015

27-May-2015

20-May-2015

6-May-2015

20-May-2015

29-Apr-2015

22-Apr-2015

8-Apr-2015

-120,000

22-Apr-2015

-25.1

Q3FY2015 – Present GOVT Bond Auction Results Classified by Tenor Basis Points

THB Mil.

Benchmark Bond 5 – 10yr

120,000

5yr

80,000

20,000

20yr

30

30yr

50yr 25

81,300

20

75,696 64,588 60,475 58,919

66,409

15

55,899

36,610

4,0003,779

T-1= -0

4,405 3,707 3,779 436 4,000

1.7

-2.4

10

37,355 33,860

22,200 20,000 20,000 20,000 20,000 20,000 20,000 20,000 18,900

-20,000

15yr

96,320

60,000

40,000

10yr

(Exclusivity)

100,000

Benchmark Bond 15 – 50yr

-0.4-0.5 -1.0 -1.2 -1.9-2.4-2.1

24,420 19,580 19,829 15,250 11,800

16,555 13,496 10,120

16,000 16,000 13,000 13,000 13,000 13,000 10,000 9,000 2.710,000

0.5 -0.8

0.2

8,080

-3.2

4.4

15,895 11,920

8, 563

22,145 18,438 14,365

16,764

17,923

5

0

-0.1 -2.8

-1.9

-2.2

-3.4 -6.4

-40,000

24,915

24,909

7,000 13,000 12,400 10,700 10,000 10,000 10,000 10,000 11,000 10,000 10,000 10,000 10,000 6,660 7,000 10,000 10,000 10,000 9,100 2.9 9,000 9,000 8,325 8,000 8,000 6,000 4,255

0.2 0.4

0.2

-2.6-2.7

24,270 21,700 16,807 17,409 16,761 15,407 16,190 13,893 14,330 4.6

21,525 17,890

29,850 25,693 22,472

28,602

-5.8

-6.2 -7.8

-6.1

-5

-4.0

-5.3-5.2 -6.4

-10

-9.4

-9.9 -11.2

-11.3

-60,000

-15 -16.5

-80,000

-100,000

-120,000

-18.8

Short-term Benchmark Bond (<10 yrs) Long-term Benchmark Bond (>10 yrs) Greenshoe Amount Average Accepted Yield

-17.7

-20

-19.9

-25 -25.1

-30

5

6 13,000

LB666A 50-yrs

15,000

-

16,000

10,000

30,000

10,000

Total

LB226A = LB366A = LB316A = LB26DA = LB666A =

LB466A =

17-Jun-2022

1.875%

Coupon

Maturity Date

50,000

Total

28 September 2016

Re-open

(Re-open

17-Dec-2026

TBA

Re-open

20-Jun-2031

3.65%

16,000

3)

Re-open

17-Jun-2036

3.40%

21,000

21,000

17-Jun-2046

2.875%

)

17-Jun-2066

4.00%

13,000

136,000

-

20,000

13,000

14 September 2016

21 September 2016

-

11,000

7 September 2016

31 August 2016

15,000

MPC

11,000

10,000

LB466A 30-yrs New

11,000

11,000

10,000

LB366A 20-yrs

24 August 2016

15,000

MPC

16,000

LB316A 15-yrs Reopen

-

20,000

30,000

LB26DA 10-yrs New

17 August 2016

10 August 2016

3 August 2016

27 July 2016

20 July 2016

13 July 2016

6 July 2016

Auction Date

LB226A 5-yrs New

Bond Auction Schedule for Q2/FY2016 Q4/FY2016 GOVTGovernment Bond Auction Schedule (Jul â&#x20AC;&#x201C; Sep 16)

7

29

NHA MG 800

24

Gauranteed and Serviced by GOVT

Partially Guaranteed by GOVT

GG :Gov. Guarantee

P :Partial

Sources

Auction

Next 5 working days

0.00

841.87

0

800

395.40

Guaranteed by GOVT

Thursday

NHA MG 2,300

EGAT NG 0 1,400

0

0

0

0

1,100

10,000

0

3

395.40 841.87 13,137.27 3,700

SRT MG 841.87

33

MG :MOF Guarantee

0

SRT MG 395.401

30

Next 5 working days (since pricing date)

27

Total

Not Guaranteed by GOVT

SRT MG 3,565 1,100 800

SRT MG 1,100

21

Term/Loan (month)

NG :Non Guarantee

Tuesday

10,000

4,400

27

BMTA MG

22

SRT MG 10,000

18

20

15

13

8

6

1

30

25

23

18

16

11

9

4

2

28

26

21

19

14

Auction Condition

Total

Syndication

Wk. 39

Wk. 38

Wk. 37

Wk. 36

Wk. 35

Wk. 34

Wk. 33

Wk. 32

Wk. 31

Wk. 30

Wk.29

Wk. 28

7

5

12

Week-Date

Wk. 27

ที่มา : สานักจัดการหนี้ 2 สานักงานบริหารหนี้สาธารณะ

September

August

July

Month

Quarter 4 6

0

7

0

Total

New borrowing for investment

New borrwing for capital substitution

Rollover

Borrowing

2,000

MEA NG 2,000

5

Note: Bridge Financing SRT

5,000

SRT MG 5,000

4

9

BAAC GG 16,955

10

38,792

4,000

42,792.27

5,295.401

6,700.00

100%

12%

16%

72%

Share

16,955

1,000

MPC

EGAT NG 1,000

MPC

Asalha Bucha

30,796.867

Amount

0

8

Bond (year)

Total

(Plan)

0

12

0

14

260,797

42,792

86,912

66,445

64,648

Total

16%

33%

25%

25%

100%

%

Borrowing summary

0

13

119,921

13,137

56,912

27,590

22,281

Term loan

1,000

MEA NG 1,000

15

due to obtaining cash from selling rice and low disbursement

Borrowing summary is expected to be lower than public debt plan as amount of 6,147 THB billion

Quarte 4

Quarte 3

Quarte 2

Quartet 1

0

11

THB Mil.

1,400

6,000

0

2,300

0

1,100

10,000

16,955

Total

Grand

0.00

841.87

0

2,800

140,876

29,655

30,000

38,855

42,366

Bond

46:54

31:69

66:34

42:58

34:66

Share

29,655 42,792.27

0

0

0

2,000

1,000 1,395.40

1,400

6,000

0

2,300

0

0

0

16,955

Totaal

Q4/FY2016 SOE Bond Auction Schedule (Jul – Sep 16)

Quarter 2

Quarter 1

8

Mar 2016

Feb 2016

Jan 2016

Dec 2015

Nov 2015

Oct 2015

Makha Bucha Day

22

21

29

15

14

28

8

7

Quarterly PD Market Dialogue

1

23

22

29

16

15

9

2

1

8

26

25

12

11

19

5

4

18

29

28

15

22

Baht Bond 1/FY2016

8

21

14

H.M. The King's Birthday observed

1

30

7

24

23

10

3

27

20

13

17

Last day of submission for Baht Bond Application (1/2016)

First day of submission for Baht Bond Application (1/2016)

Auction T-bill

Retail Only

Auction T-bill

Issue Regular Saving Bond 1/2016(3y) : 50,000 MB (19 Oct 15 - 29 Feb 16)

Auction T-bill

Auction T-bill

6

16

9

2

26

19

12

5

Mon

First day of submission for Baht Bond Application (2/2016)

MOF Outright PD Committee : Quarterly PD's Evalution

Quarterly PD Market Dialogue

Action LB446A (30Y) : 10,000MB

MOF Outright PD Committee

Tue

30

23

16

9

2

24

17

10

3

27

20

13

6

30

23

16

9

2

25

18

11

4

28

21

14

7

Action LB366A (20Y) : 10,000MB NEW 20Y

MPC

Action LB296A (15Y) : 10,000MB

Action LB666A (50Y) : 10,000MB NEW 50Y

Action LB25DA (10Y) : 13,000MB

Action LB446A (30Y) : 10,000MB

Action LB206A (5Y) : 20,000MB

MPC

Action LB296A (15Y) : 10,000MB

Action LB366A (20Y) : 11,000MB NEW 20Y

Action LB666A (50Y) : 10,000MB NEW 50Y

Action LB25DA (10Y) : 14,000MB

Action LB206A (5Y) : 27,000MB

MPC

Action LB296A (15Y) : 13,000MB

Action LB666A (50Y) : 9,000MB NEW 50Y

Action LB366A (20Y) : 11,000MB NEW 20Y

Action LB25DA (10Y) : 13,000MB

MPC

Action LB296A (15Y) : 13,000MB

Action LB206A (5Y) : 24,000MB LB446A (30Y) : 9,000MB

Wed

31

24

17

10

3

25

18

11

4

28

21

14

7

31

24

17

10

3

26

19

12

5

29

22

15

8

1

PDMO Bond Calendar FY 2016

Last day of submission for

New Year's Eve

Constitution Day

Thu

1

25

18

11

4

26

19

12

5

29

22

15

8

1

25

18

11

4

27

20

13

6

30

23

16

9

2

Quarterly Macroeconomics Report (FPO)

New Year's Day

Quarterly Macroeconomics Report (FPO)

Chulalongkorn Day

Fri

2

26

19

12

5

27

20

13

6

30

23

16

9

2

26

19

12

5

28

21

14

7

31

24

17

10

3

27

20

13

6

28

21

14

7

31

24

17

10

3

27

20

13

6

29

22

15

8

1

25

18

11

4

Sat Sun 3

Quarter 3

Quarter 4

9

Sep 2016

Aug 2016

Jul 2016

Jun 2016

May 2016

Apr 2016

26

19

12

5

29

22

15

8

1

25

18

11

4

27

20

13

6

30

23

16

9

2

25

18

11

4

Auction T-bill

Auction T-bill

Auction T-bill

Auction T-bill

Auction T-bill

Auction T-bill

Auction T-bill

Auction T-bill

Auction T-bill

Auction T-bill

Auction T-bill

Special Holiday

First day of submission for Baht Bond Application (3/2016)

Auction T-bill

Auction T-bill

Auction T-bill

Auction T-bill

Auction T-bill

5

27

20

13

6

30

23

16

9

2

26

19

12 Auction T-bill

5

28

21

14

7

31

24

17

Auction T-bill

10

3

26

Auction T-bill

19

Asalha Bucha

Action LB206A (5Y) : 20,000MB LB446A (30Y) : 10,000MB

12 Auction T-bill

MOF Outright PD Committee : Quarterly PD's Evalution

Auction T-bill

Auction T-bill

Labor Day observed

Long-term Investor Meeting

Auction T-bill

Auction T-bill

Baht Bond 2/FY2016

28

21

14

7

31

24

17

10

3

27

20

13

6

29

22

15

8

1

25

18

11

4

27

20

13

6

Action LB226A (5Y) : 20,000MB NEW 5Y

MPC

21

14

7

30

23

16

9

2

26

19

12

5

28

21

14

7

Auction T-bill

Quarterly PD Market Dialogue

Coronation Day

Last Day of submission for MOF Outright PD's Application

Songkran Festival Day

First Day of submission for MOF Outright PD's Application

29

22

15

8

1

25

18

11

4

Annual PDMO-Market Dialogue + MOF Awards

MOF Outright PD Committee : Final Review

Baht Bond 3/FY2016

Action 28 LB366A (20Y) : 10,000MB

Action LB666A (50Y) : 13,000MB

Action LB366A (20Y) : 11,000MB

Action LB466A (30Y) : 11,000MB NEW 30Y

Action LB26DA (10Y) : 15,000MB NEW 10Y

MPC

Action LB316A (15Y) : 16,000MB Reopen 15Y

Buddhist Lent Day

Action LB226A (5Y) : 30,000MB NEW 5Y

Action LB466A (30Y) : 10,000MB NEW 30Y

Action LB25DA (10Y) : 16,000MB

Action LB666A (50Y) : 10,000MB

Action LB206A (5Y) : 20,000MB LB346A (20Y) : 10,000MB

Action LB296A (15Y) : 10,000MB

Action LB666A (50Y) : 10,000MB

Action LB296A (15Y) : 10,000MB

Action LB25DA (10Y) : 16,000MB

Songkran Festival Day

Chakri Day

Special Holiday

Quarterly Macroeconomics Report (FPO)

H.M. The Queen's Birthday

24

17

10

3

27

20

13

6

30

23

16

9

2

25

18

11

4

28

21

14

7

30

23

16

9

25

18

11

4

28

21

14

7

31

24

17

10

3

26

19

12

5

29

22

15

8

1

24

17

10

Remark : Royal Ploughing Ceremony Day- waiting for an annoucement This schedule is subject to change without prior notice.

30

23

16

9

2

26

19

12

5

Mid-year Bank Holiday

Visakha Bucha

Quarterly Macroeconomics Report (FPO) Last day submission for Baht Bond Application

29

22

15

8

1

24

17

10

3

27

20

Auction T-bill

Songkran Festival Day

12 - 15 May 2016: Money Expo

13

6

29

22

15

8

10

Peers Comparison

BOND market capitalization Source : Asian Bond online (ADB)

BOND mkt. cap : GDP

227%

Government BOND Yield Curve

% Yield

200%

Public Sector (GOVT + CB + SOE) Private Sector

Hundreds

% : GDP 250%

130%

150%

9%

97%

100%

10%

75%

Indonesia

8%

59%

50%

21%

Vietnam

7%

0% 6%

5%

Malaysia

Share of PUBLIC sectorâ&#x20AC;&#x2122;s Bond to Total BOND mkt. cap.

Philippines

4% % : BOND mkt. cap.

USD Billions 300

97%

100%

87%

China

2.75%

3%

83% 75%

1.74%

2%

GOVT 117

50%

58%

Singapore USA

2.02%

150

1%

USD Billions

85

BOT 78

Philippines

Thailand

38

Japan

0%

SOE 22

161

136

-1%

0%

Te n o r

0 Vietnam

Indonesia

Thailand

Korea

55%

USD Billions

125

3.14%

Singapore

Malaysia

As of June 30th ,2016

Government BOND Yield Matrix

ASEAN & Peers

As of June 30th ,2016

6m

1 yr

2 yr

3 yr

4 yr

5 yr

6 yr

7 yr

8 yr

9 yr

10 yr

20 yr

30 yr

40 yr

Japan

-0.31

- 0.32

- 0.30

- 0.31

- 0.32

- 0.32

- 0.34

- 0.34

- 0.31

- 0.29

- 0.24

0.05

0.09

0.11

USA

0.35

0.46

0.62

0.74

0.89

1.03

1.17

1.30

1.37

1.43

1.50

1.86

2.30

-

0.88

1.03

1.19

1.35

1.51

1.59

1.67

1.74

1.82

1.90

2.26

2.36

Korea

1.29

1.30

1.28

1.25

1.28

1.30

1.34

1.37

1.41

1.44

1.48

1.56

Thailand

1.44

1.46

1.57

1.57

1.63

1.74

1.79

1.85

1.92

1.96

2.02

2.48

Philippines

1.55

1.82

2.38

3.07

3.25

2.81

2.85

2.89

3.29

3.68

4.08

4.21

China

2.27

2.40

2.51

2.56

2.63

2.70

2.81

2.87

2.87

2.86

2.86

Malaysia

2.76

2.76

3.01

3.22

3.29

3.36

3.49

3.61

3.65

3.68

3.72

Vietnam

-

4.49

4.91

5.40

5.79

6.19

6.44

6.69

6.78

6.88

6.98

Indonesia

5.83

6.66

7.08

7.26

7.34

7.39

7.43

7.47

7.52

7.56

7.61

Singapore

50 yr

2.75

3.00

3.14

3.42

3.54

3.63

3.70

4.30

4.62

7.96

8.07

Brunei Cambodia Laos Myanmar below 1%

2.01% - 3%

over 4%

1.01% - 2%

3.01% - 4%

no data

11

Basic & Essentials  Bond Market Development Strategy  Public Debt Outstanding  Total Domestic Public Debt  Bond Market Capitalization  Liquidity & Secondary Market Trading  Supporting Inclusive Growth Through ASEAN Bond Market Integration

 Non-Resident Holding in Domestic Bond

12

 Funding Infrastructure Investment  Connecting ASEAN

Domestic Bond Market in Transition

Funding Infrastructure Investment Connecting ASEAN (2013 - 2016) 2016 Highlights

Market Deepening Oriented (2010 - 2012)

Sustainable Source of Fund

Water Decree (350,000 THB Mil.)

Full Funding Capacity : 1,200,000 THB Mil.

Thai Khem Khang (350,000 THB Mil.)

1,900,000 THB Mil. Long-Term Infrastructure Inv’t

Baht Bond (Foreign Issuers Bond)

Baht Bond (CLMV) Credit Guarantee Investment Facility (CGIF)

Regional Connectivity / AEC

Debt Folio Enhancement

Foreign Currency Bond (Plan) ATM Lengthened

Well-Distributed Investor Base

Cost Lowered

Well-Balanced Fixed-Floating Ratio

FIDF Decree Passed = 70,000 THB Mil. Fiscal Space

Well-Distributed Maturity Profile / Bond Switching Bond Switching (1st execution: 28 Nov 14)

Appointed 14 MOF-Outright PD

Market Infrastructure

Strengthening PD system

Activated Public Debt Management Fund

(Exclusivity, League Table, Greenshoes Option)

STRIPS Bond Saving Bond Online

Inaugural 10-yr Inflation-Linked Bond (10-yr)

Innovation / Product Development

Long-term Fixed Promissory Notes (25-35-45-yr)

Super- Size Inaugural 25-yr Back-End Amortized Bond

Electronic Retail Savings Bond (3-5-yr) Annual PDMO Market Dialogue Annual PDMO Market Dialogue

Market Consultation

Quarterly PDMO one-on-group MOF Outright PD Dialogue

Quarterly PDMO one-on-one PD Dialogue

50

30

Building Yield Curve / Enhancing Liquidity

15 10 7 5 3

Monthly PDMO one-on-one MOF Outright PD Dialogue

Liquidity-Oriented

300,000 MB

20

8 Tenors of Benchmark Bonds

150,000 MB Outstanding Amount

3 5 7

10

15

20

30

50

Equilibrium of Domestic Bond Market Issuers

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

Credit Rating

• 99 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) 1% Non-rated

Baht Bond 1%

A % 2424 %

Government Government

3838 % %

SOEs 8%

12%

SOEs SOEs 8% 8%

4%

Government Government

39% 38%

BOT BOT

BOT BOT

29 29%%

2928 % %

Total of 10.4 THB Trillion

Source : ThaiBMA (End of June 2016)

Household 5%

Mutual Funds 2%

Other 1%

BBB

A % 12

Corp Bond Corp Bond

Government Debt Securities (Classified by Types of Investors)

Total of 10.4 THB Trillion

Source : ThaiBMA (End of June 2016)

Financial Institution 3%

Bot 6%

Non- profit organization 1%

Contractual Funds 27%

NR 14%

Depository Corporation 14% Depository Corporation NR 13% %

31

Insurance Company 28%

Total of 3.9 THB Trillion

Source : BOT (End of April 2016)

13

Public Debt Outstanding (as of Apr 2016) = 6.05 THB Trillion (44.09% of GDP) Components of Public Debt

Units : THB Mil.

3,491,049 983,170 1,039,689 524,403 12,285

1. Government Debt (excluded FIDF)

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

Autonomous Agency Debt

0.20% Special Financial Institutions Guaranteed Debt

8.67

% 524,403 THB Mil.

6,050,596

Public Debt Outstanding

12,285 THB Mil.

Note : Included External Debt

Non-Financial State Enterprise Debt

17.18% 1,039,689 THB Mil.

GOVT Debt 57.70% 3,491,049 THB Mil.

GOVT Debt (for FIDF)

16.25% 983,170 THB Mil.

Source : Information Technology Centre, PDMO

Portion of Public Debt Serviced by The Government Public Debt Components “All”

Public Debt Components “serviced by the government ”

6.05 THB Trillion

3.92 THB Trillion

Autonomous Agency Debt

Special Financial Institutions Guaranteed Debt

0.20% 12,285 THB Mil.

serviced by the government

8.67% 524,403 THB Mil.

Non-Financial State Enterprise Debt

17.18% 1,039,689 THB Mil.

Special Financial Institutions Guaranteed Debt

Autonomous Agency Debt

serviced by the government 0.03%

7.22%

GOVT Debt 57.70%

GOVT Debt 53.31 % % 56.84

3,491,049 THB Mil.

GOVT Debt (for FIDF)

16.25% 983,170 THB Mil.

As of Apr 2016

14

Non-Financial State Enterprise Debt

100%

serviced by the government

0.74%

65%

Total Domestic Public Debt = 5.70* THB Trillion Assumptions : 6 months BIBOR = 1.72%, 6 months Fixed Deposit Rate = 1.23%, Inflation = 0.7%

Non-financial SOEs

400,000

financial SOEs

As of Apr 2016

Autonomous-Agencies

SOE Debt (Serviced by GOVT) = 483,771 THB Mil.

300,000 200,000

Excluding Not serviced by GOVT 828,439 THB Mil. External SOE debt (Serviced by GOVT) 62,427 THB Mil. External SOE debt (Not-Serviced by GOVT) 201,740 THB Mil.

18,500

2,600

8,000

25,000

10,400 400

2,987 8,000

28,000

0

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

86% 8% Next 5 yrs

FIDF 1

400,000

FIDF 1

GOVT Debt (for FIDF) = 983,170 THB Mil.

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

74,000 28,198

126,850

Next 5 yrs

Budget Deficit

T-Bill

400,000

TKK

On-lending Loan

GOVT Direct Debt

3,000

300,000

Water RW DPL Ext. Guaranteed Debt    (exclude FIDF) THB Mil.  (Excluding foreign debt 91,029 THB mil. )

= 3,400,020

10 yrs +

= 11yrs 4mths = 3.84% = 88: 12 = 6% Maturity Profile

3,900

19%

165,902

27,600

29,400

128,057

20,000 5,500

95,936

196,379

33,581 35,000

204,252

2,400

43%

38%

12,000

0 41,900

43,000

239,798

81,656

59,141

53,664

286,104

100,872 11,836

2,625

10%

6-10 yrs

ATM Avg. Cost Fixed : Floating Callable

13,000 3,717 158,501

431,367

= 3yrs 11mths = 4.02% = 93: 7 = 4% Maturity Profile

24,700

76,700 18,900

0

16,000

100,000

20,000 1,381 13,758 9,619 12,000

176,164

29,482 116,630

10,302

4,584 30,000

146,713

100,000

20,000

200,000

10 yrs +

31%

TTM Fiscal Year

22,000

6%

6-10 yrs

59%

71,000

101,800

25,000

0

40,000 69,000

60,688

25,000

143,913

77,059

128,000

300,000

100,000

Maturity Profile

10,000

TTM Fiscal Year

200,000

= 2yrs 9mths = 2.86% = 62: 38 = 38%

8,000 97,814

9,755

160,055

10,926

68,748

100,000

Note : * Not included External Debt

29,000

TTM Fiscal Year

Next 5 yrs

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

Well-Developed Bond Market Improved GOV’T Direct Debt Profile Dramatically

6-10 yrs

10 yrs +

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

Note : Government Direct Debt = 3,400,020 THB Mil. (exclude FIDF and external debt)

As of Dec 2007

ATM

Average-Time-to-Maturity LENGTHENED by 6yrs 1mth

Avg. Cost LOWERED by 66 bps.

As of Apr 2016

11yrs 4mths

ATM

5yrs 3mths

Avg. cost

4.5%

(While ATM Lengthened by 6yrs 1 mth)

Avg. cost

3.84% Floating

Well-Balanced Fixed/Floating Ratio (Target : Fixed/Float ratio = 85 : 15)

10%

Fixed

Fixed

90%

88%

54%

Well-Distributed Maturity Profile (Maturing Debt in the next 5 yrs is less than 50% of Total Debt)

Floating

28%

Next55yrs yrs year 6-10 yrs next 6 -10

43%

38%

18% 10 10 yrs yrs ++

12%

19%

Next 5 yrs

6-10 yrs

10 yrs +

15

Bond Market Cap.= 10.4 THB Trillion ($295 Bil.)*

% Share of GDP

GOVT Bond = 4.0 THB Trillion ($111 Bil.)*

Domestic Bond Market Classified by Issuer

140%

128%

120%

101% 100%

99% 80%

2,569,043 THB Mil

60% 40% Asian Fin. Crisis

20%

24%

806,635 THB Mil.

12%

Bank Loan /GDP

Equity/GDP

Bond Market / GDP

29%

Mar-16 Apr-16 May-16 Jun-16

0%

3,029,662 THB Mil.

Maturity Profile BOT vs GOVT Bond

38%

BOT ATM = 7mths GOVT ATM = 10yrs 7mths

12%

*As of June 2016

3,927,124 THB Mil.

Remark : Excluded PN,TL

77%

≤

18%

23%

10%

1<yr≤3

3<yr≤5

26%

34%

5<yr≤10

10<yr≤50

As of 30 June, 2016

*Source: BOT Exchange rate as of 30 Jun 2016

Full Capacity* of All Government Funding Instruments

1,250,000 THB Mil. per Year

* Under favorable market liquidity + using All funding instruments

% 4.00 3.75 3.50

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

($4.3 Bil.)** ($3.4 Bil.) ($2.3 Bil.) ($2.3 Bil.) ($1.7 Bil.) ($1.7 Bil.) ($1.4 Bil.) ($1.4 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. 50,000 THB Mil. 50,000 THB Mil.

($35.5 Bil.)**

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

GBI-EM Global JP Morgan

iBoxx Asia ex Japan Markit

8.0%

Benchmark Bond

Asian Local Markets HSBC

9.6%

8.0%

Last Update : End of June 2016

3.25

50

3.00

30

2.75 2.50

15

20

2.25

10

2.00

7

1.75 1.50 1.25

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

5

3

Infrastructure

liquidity

1.00 0.75

Benchmark Bond

($18.5 Bil.) ($2.8 Bil.) ($2.8 Bil.) ($2.3 Bil.)

Benchmark Bond

~650,000THB Mil. (52%)

Savings Bond

~100,000THB Mil. (8%)

Amortized Bond

~100,000THB Mil (8%)

Inflation-Linked Bond

~80,000THB Mil. (6%)

(2.0 Bil.) ($1.4 Bil.) ($5.7 Bil.)

Promissory Note

~70,000THB Mil. (6%)

Floating Rate Bond Bank Loan

($35.5 Bil.) Total

~50,000THB Mil. (4%) ~200,000THB Mil. (16%)

1,250,000 THB Mil. (100%)

0.50

TTM

16

Source: ThaiBMA Government Bond Yield Curve (end of June 2016)

**Source: BOT Exchange rate (As of 30th June,2016)

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

Total GOVT Bond = 40 Series (End of June 2016)

Tier 2 > 50,000 THB Mil. in Size

(5% of Trading Volume)

Outstanding (THB Mil.)

Tier 1: >100,000MB

450,000

FY2015 Market Share of Trading Volume in Secondary Market Tier 1 Tier 2

(12 Series) 400,000

90%

Outstanding size (THB Mil.)

350,000

0

300,000

5%

5%

50

100

Tier 2: 50,000 – 100,000MB

250,000

(13 Series)

15

200,000

10 5 30

150,000

100,000 100,000

50

20

50,000

LB383A

LB396A

LB406A

LB183A

LB244A

LB22NA

LB214A

LB19DA

LB171A

LB316A

LB366A

LB175A

LB666A

LB24DA

LB267A

LB233A

LB167A

LB198A

LB283A

LB16NA

LB191A

LB326A

LB213A

LB193A

LB27DA

LB183B

LB17OA

LB416A

ILB217A

LB446A

ILB283A

LB616A

LB206A

LB236A

LB25DA

LB176A

LBA37DA

LB296A

LB196A

LB21DA

0

FY 2016 on-the-run Benchmark Bond

Source : ThaiBMA

GBI-EM Thailand – JPMCB0

FY2016 Secondary Trading Volume

9 of 10 most Trading Volume have outstanding size over 100 bil.

As of June 2016

Outstanding (THB Mil.)

Trading Volume Current Outstanding ≥ THB 100 Bil. Current Outstanding = THB 50-100 Bil. Current Outstanding ≤ THB 50 Bil.

10 GOVT Bond series are included in JPMCB Index

450,000

3 of which are on-the-run Benchmark Bond (5-10-15-yr)

450,000

FY 2016 on-the-run Benchmark Bond

400,000

400,000

GBI-EM Thailand - JPMCB Trading Volume

350,000

350,000

300,000

300,000

250,000

200,000

250,000

15 5

200,000

10 30

150,000

150,000

100,000 100,000

100,000

50

20

50,000

50,000

LB396A

LB22NA

LB383A

LB233A

LB214A

LB183A

LB416A

LB283A

LB267A

LB244A

LB19DA

LB316A

LB616A

LB406A

LB326A

LB24DA

LB213A

LB198A

LB171A

LB175A

LB167A

LB27DA

LB16NA

LB17OA

LB193A

LBA37DA

LB183B

LB666A

LB191A

ILB283A

LB446A

ILB217A

LB366A

LB296A

LB236A

LB176A

LB25DA

LB196A

LB206A

0 LB21DA

0

17

Linking CGIF & BAHT BOND to the Development of Bond Market

00

Total Outstanding 10,399,964THB Mil.

CGIF

00

00

(As of 30th June, 2016 )

00

Inaugural (Noble, Hong Kong)

00

00

Baht Bond (Foreign Issuers Bond)

BAHT BOND

1%

THB

67,499 Mil.

THB 2,850 Mil.

00

00

00

00

Corp Bond

24%

SOEs Bond

8%

0

2013 2014 2015 2016 2017 2018 2019 2020

Natural Hedging

111111 Inv’t Grade

BOT Bond

MHBK CABEI

29%

KEXIM

WOORI EDLGEN

Targeted Industry

GOVT Bond

Why now?

MOFL

What next?  Broadening Issuer Base : AEC  Becoming bond market leader of the region

 Entering ASEAN Economic Community (AEC)

(PDDF.)

18

38%

Baht Bond’s Maturity Profile (Classified by Issuers)

2016 - 2025

Public Debt Management Office, Ministry of Finance

THB Mil.

CLMV

30,000

67,499 THB Mil.

40

%

26,590 THB Mil.

34

Non-Gov’t

10%

%

(23,066) MHBK

(6,500 THB Mi ) l.

Baht

Lao PDR (Government)

30%

Size : 3,000 THB Mil. Issue: Sept 28th, 2015

20,000

IFIs , International Credit Rating

(20,090 THB Mil.)

(40,909 THB Mil.)

60

%

15

KEXIM

%

12

(10,000)

%

10,000

9

8

%

%

(5,668)

2

%

CITI

(1,434) ADB

Lao PDR (Gov,t)

Today

WOORI

HANA

WOORI

WOORI CABEI

0

KEXIM

(6,330)

Lao PDR (Gov,t)

EDL-Gen Lao PDR (Gov,t)

Lao PDR (Gov,t)

(8,000)

9

%

(5,701) KEXIM CABEI

2

EDL-Gen

(1,500)

Lao PDR (Gov,t)

KEXIM

%

4

%

(2,800) KEXIM

5

KEXIM

%

(3,000)

Lao PDR (Gov,t)

EDL-Gen

Source : PDMO (As of 30th June , 2016)

19

2007 - 2015

Growth of Corporate Bond Outstanding has Accelerated

Baht Bond Outstanding

Total Outstanding 10,399,964 THB Mil.

Corporate Bond Outstanding % Share of Corporate Bond Outstanding to Bond Market Capitalization % Share of Baht Bond Outstanding to Bond Market Capitalization

Baht Bond 1% 67,499 THB Mil

25% Corp Bond 24% 67,499 THB Mil.

20%

2,569,043

18%

THB Mil.

SOEs Bond BOT Bond

8%

29%

3,029,662 THB Mil. GOVT Bond

1.4%

0.6%

0.6%

38%

3,927,124 THB Mil.

End of June 2016

Source : ThaiBMA (As of 30th June, 2016 )

Corporate Bond & Baht Bond Outstanding (Classified by TTMs)

Average size per issuance:

2,100 THB Mil.

THB Mil. 1,000,000

38% 33,564

Total Outstanding : Number of Corporate Bond: Average size per issuance:

2,236,717 1,065 2,100

THB Mil.

(Series) THB Mil.

850,268

Baht Bond Corporate Bond

500,000

17%

16%

2,934

15,701

12%

343,838

4,300

393,179

281,229

13% 11,000 283,476

4% -

TTM (Years) 0

83,757

Source : ThaiBMA (As of 30th June, 2016 )

20

-

-

-

-

Remark : Excluded Commercial Papers (less than 1 year at issue)

31%

Corporate Bond & Baht Bond Outstanding (Classified by Size) THB Mil. 200,000

Corporate Bond

Outstanding (THB Mil.)

are 6 Major Corporates No. of Issuers

% Share of Outstanding

A Rated Group (AAA, AA, A)

CPALL

B Rated Group (BBB, BB)

SCG PTT

≥ 50,001

6

31%

10,001 – 50,000

56

55%

≤ 10,000

132

14%

Total

194

100%

Unrated

Baht Bond 150,000 Baht Bond Lao PDR (Gov’t)

BahtLaoBond PDR (EDL-Gen)

100,000

CPF BAY THAI

50,000 50,000

Lao PDR (Gov’t) (BBB+) 20,090 THB Mil.

Lao PDR (EDL-Gen) (BBB+) 6,500 THB Mil.

10,000 0

Issuer 1

Issuer 194

Source : ThaiBMA (As of 30th June, 2016 )

Remark : Excluded Commercial Papers (less than 1 year at issue)

49%

Corporate Bond & Baht Bond Outstanding (Classified by Credit Rating) THB Mil. 200,000

Corporate Bond

Rating

CPALL

AA Rated

150,000

No. of Issuers

375,242

17%

12

AA

389,578

17%

27

1,131,502

49%

51

BBB Rated

PTT

% Share of Outstanding

AAA

A Rated

SCG

Outstanding (THB Mil.)

AAA Rated

is A Rated

BB Rated

A

Unrated

BBB

324,349

14%

49

BB

28,663

1%

3

Baht Bond Baht Bond

Baht Lao Bond PDR (Gov’t) Lao PDR (EDL-Gen)

Unrated Total

53,913

2%

52

2,236,717

100%

194

100,000

CPF

Lao PDR (Gov’t)

BAY

(BBB+) 20,090 THB Mil.

THAI

50,000 50,000

Lao PDR (EDL-Gen) (BBB+) 6,500 THB Mil.

10,000 0

AAA

AA

Source : ThaiBMA (As of 30th June, 2016 )

A

BBB

BB

Unrated

Remark : Excluded Commercial Papers (less than 1 year at issue)

21

Annual Capital Flow classified by GOVT & BOT Bond (2007 – 2016)

147,556 THB mil.

(2016YTD)

THB Mil. 350,000

300,000

147,556 THB mil

.

250,000

+93,249

BOT Bond 130,606THB mil.

200,000

GOVT Bond 16,950 THB mil.

+84,003 150,000 +23,052 100,000

+196,463 130,606 +129,454

50,000

0

+30,216 0

-50,000

-22,494

-2,793

+117,144

+96,738 29,642

-1,598 -7,506

-53,807

-27,157

16,950

-71,124

-100,506 -37,994

-100,000

-150,000

2016 YTD

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

2016 Weekly (The past 26 weeks) THB Mil.

150,000

As of 30th June, 2016

Net Change in Non-resident Holding (YTD) BOT Bond vs GOVT Bond

As o

(1 USD/ THB) THB Mil.

Accumulative NR Holding = 147,556THB mil.

41

(Since 1 Jan – 30 June 2016)

40

125,000

BOT Bond

100,000

130,606 THB mil.

39

75,000

38

50,000

37

GOVT Bond

25,000

16,950 THB mil.

36

0

0

-25,000

35

1 USD = 35.245 THB

-50,000

34

-75,000

33

-100,000

32

-125,000

Foreign Exchange (USD/THB)

NR Holding in GOVT Bond

31

NR Holding in BOT Bond

WK1 WK2 WK3 WK4 WK5 WK6 WK7 WK8 WK9 WK10 WK11 WK12 WK13 WK14 WK15 WK16 WK17 WK18 WK19 WK20 WK21 WK22 WK23 WK24 WK25 WK26 WK27 WK28 WK29 WK30 WK31 WK32 WK33 WK34 WK35 WK36 WK37 WK38 WK39 WK40 WK41 WK42 WK43 WK44 WK45 WK46 WK47 WK48 WK49 WK50 WK51 WK52

-150,000

As of 30th June, 2016

22

T

Non-Resident Holding in THB Bond = 720,495 THB Mil.

Outstanding

Thai Bond Market Cap. =10,399,964 THB Mil.

GOVT Bond GOVT Bond

574,063 571,482

BOT Bond Bond BOT

118,177 148,077

SOE Bond Bond SOE

0 71

6.24% 5.495% 1.390% 1.28% 1.424% 1.28 0.00% 0.001% 0.01 0.008% 0.01%

865 666

720,495

TOTAL TOTAL

7.53% % 6.928

692,906

GOVT Bond Outstanding 3,927,124

BOT Bond Outstanding 3,029,662

THB Mil.

THB Mil.

Non-Resident 148,077THB Mil.

Non-Resident 571,482 THB Mil.

29%

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

Non-Res i dent Hol di ng Non-Resident Holding (THB Mi l l i on) (THB Million)

Issuer Issuer

Corp Bond Corp Bond

3,029,662 THB Mil. Domestic Investors

Domestic Investors

38%

2,881,585 THB Mil.

3,355,642 THB Mil.

95.1

85.4

3,927,124 THB Mil.

%

%

As of 30th June, 2016

Peers Comparison

Non-Resident Holding in Thai GOVT Bond is 571,482 THB mil. or 14.6 % of Total GOVT Bond Outstanding

(C

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

40%

Indonesia

38.48% Mar’ 15

Malaysia 34.11% Mar’ 15

30%

Peak @ 19.1% (Apr’ 13)

Thailand

20%

14.6%

As of 30th June,16

Japan 10.72%

10%

Dec’ 15

Korea 10.05 % Dec’15

2008

2009

Source : AsianBondsOnline, ThaiBMA

2010

2011

2012

2013

2014

2015

Sep-16

Dec-16

Jun-16

Mar-16

Dec-15

Jun-15

Sep-15

Mar-15

Dec-14

Jun-14

Sep-14

Mar-14

Dec-13

Jun-13

Sep-13

Mar-13

Dec-12

Jun-12

Sep-12

Mar-12

Dec-11

Jun-11

Sep-11

Mar-11

Dec-10

Jun-10

Sep-10

Mar-10

Dec-09

Jun-09

Sep-09

Mar-09

Sep-08

Dec-08

Jun-08

0%

Mar-08

e a

2016

2016 As of 30th June, 2016

23

Source: Public Sector Development Group, PDMO

Pro-active Debt Management

Develop Domestic Bond Market to be a Sustainable Source of Funding for the Stability of Thailandâ&#x20AC;&#x2122;s Financial System

Foster Strong and Effective Organization

3 PDMOâ&#x20AC;&#x2122;s Strategies

Formulate sound public debt management policies and strategies as well as conduct, monitor and evaluate public debt management operations under the relevant legal framework and guidelines

Mission

Transparency, Discipline, Trustworthiness, Driving Social and Economic Development

Values

Professional in public debt management for sustainable development

Vision

Nantachod Samarnwong

Economist

Sittan Sathianphattanakool

Economist

Nattakarn Boonsri, Director

Government Bond Market Development Division

Nattakarn Boonsri, Senior Expert

Kittipoom Ounjai

Economist

Phimonphan Tanwattana

Economist

Wanthanee Phongam

Economist

Paroche Hutachareon, Director

Senior Expert on Bond Market Development

Executive Director

Upama Jaihong

Bond Market Development Bureau

Fund Management and Bond Market Infrastructure Development Division

Sunee Eksomtramate Executive Director

Pimpen Ladpli

Ekaraj Khuankhunsathid Executive Director

Executive Director

Policy and Planning Bureau

Sriarpa Ruangruchira

Senior Economist

Phacharaporn Khotnarin

Economist

Oraporn Thomya, Acting Director

International Bond Market Policy Division

Public Infrastructure Project Financing Bureau

Public Infrastructure Project Management and Evaluation Viriyataveekul Jindarat Viriyataveekul JindaratBureau Acting Executive Director Executive Director

Sirasa Kanpittaya

Theeraj Athanavanich

Debt Management Bureau 2

Deputy Director-General

Suwit Rojanavanich

Director-General

Deputy Director-General

Debt Management Bureau 1

Wisut Chanmanee Bond Market Advisor

Bond Market Advisor

Front Office Middle Office Back Office Support Offic

Siribha Satayanon Secretary

Office of the Secretary

Chanikarn Chaiyasena

Economist

Nakarin Prompat, Acting Director

Financial Product Development Division

Teeralak Sangsnit Executive Director

Payment Administration Bureau

Risk Management Group

Information Technology Center

Legal Advisory Group

Public Sector Development Group

Internal Audit Group

Ace Viboolcharern Public Debt Advisor

Public Debt Advisor

For Further Information : Upama Jaihong

upama@pdmo.go.th

Executive Director of Bond Market Development Bureau

Nattakarn Boonsri

nattakarn@pdmo.go.th

Acting Senior Expert on Bond Market Development Director of Government Bond Market Development Division

Paroche Hutachareon

paroche@pdmo.go.th

Director of Fund Management and Bond Market Infrastructure Development Division

Oraporn Thomya

oraporn@pdmo.go.th

Acting Director of International Bond Market Policy Division

Nakarin Prompat

nakarin@pdmo.go.th

Acting Director of Financial Product Development Division