The Public Debt Management Office (PDMO) is preparing the first batch of the government’s savings bonds for the 2022 fiscal year. The initial offer of the bonds is expected to occur from 15 November- 3 December 2021.
Director General of the PDMO, Patricia Mongkhonvanit, has stated that the PDMO will offer savings bonds of 150 billion baht in fiscal 2022. 80 billion baht of this amount will be available on the November date, with the remaining becoming available in May and September of 2022. Of these 80 billion baht, 10 billion will be available to individual investors through the Sasom Bond Mung Kung (Sor Bor Mor) e-wallet application. These bonds will be offered in two different types, both with coupons to be paid quarterly in arrears:
1. A five-year maturity with a step-up interest rate of 2.1% per year; or
2. A ten-year maturity with a step-up interest rate of 3% per year.
Investors have the option to invest between 100 baht to 10 million baht.
Out of the remaining 70 billion baht, 55 billion baht will be offered to individual investors between 22 November- 3 December 2021. These bonds will also be separated into two types:
1. A five-year maturity with a step-up interest of 2.1% per year; or
2. A ten-year maturity with a step-up interest rate of 3% per year.
These bonds will be available, and distribution will be controlled by the four dealer banks- Krungthai Bank, Bangkok Bank, Kasikornbak and Siam Commercial Bank. There is no maximum limit of investment, but investors must invest at least 1,000 baht.
The remaining 15 billion baht will be distributed to non-profit organizations chosen by the Finance Ministry.
The PDMO hopes that the issuance of these bonds will offset the budget deficit in the 2022 fiscal year.