Thailand eyes foreign bonds to set private sector rates

Thailand’s Ministry of Finance is poised to issue foreign currency bonds for the first time in 20 years, a move that is not aimed at fundraising but at establishing a benchmark interest rate for the private sector. The announcement was made by Julapun Amornvivat, Deputy Minister of Finance, who stated that the Public Debt Management Office (PDMO) has been tasked with considering the issuance of bonds in various foreign currencies.

The potential issuance of foreign currency bonds, including Samurai bonds, yuan-denominated bonds, and dollar bonds, garnered interest from Hong Kong, a financial market known for its robustness. However, the details and benefits of such a move for Thailand need to be carefully evaluated for their value and how they would simplify processes, Julapun said.

“There is an opportunity to discuss the matter in Hong Kong. Hong Kong expressed interest in…