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Bangkok Bank > Personal Banking > Investments / Fixed > Bonds
How to Buy and Sell Bonds at Bangkok Bank
how to buy bonds The Nature of the Bond Market
There is no fixed place for trading as in a stock market.  Bond dealers act as intermediaries for both bond buyers and sellers. 

 
Normally dealers quote the bid and offer prices for bonds in newspapers and on their own websites.
 
Minimum Investment
  • Government bonds and state enterprise bonds
    500 units or 500,000Bt and multiple of 100 units or 100,000Bt.
  • Corporate debentures (private placement)
    10,000 units or 10 million Bt and multiples of 100 units or 100,000Bt.
  • Corporate debentures (public offering)
    Ten units or 10,000Bt and multiples of ten units and 10,000Bt.
Documents Required
  • Two copies of Citizen ID card
  • Two copies of deposit book (if you want to transfer your coupon payment into a bank account)
  • Power of attorney (if someone else is doing the transaction on your behalf)
  • A bond certificate (if you are selling)
  • A copy of your tax ID (if you are selling)
Scrip/Scripless
When buying bonds, you can either request a certificate of ownership (scrip) or apply for the book entry system (scripless).  If you request a bond certificate, the registrar will deliver your certificate to you within 45 days. With the book entry system, your name will be recorded on the bondholder's account and you will receive a statement instead.
 
Coupon Payment
When you make your purchase you will be asked to choose how you wish to receive the interest payable (coupon payments.) There are two methods of payment.
  • Directly into your bank account
  • By cheque
Note: The coupon payment is paid by the issuer. Withholding tax of 15% will be deducted, every time the coupon is paid.
 
Trading Process
  • All securities can be bought and sold at all branches. Ten of our branches can process transactions online.
  • Fill out buying/selling application forms
  • When you are buying, the price will be today's price (T)
  • When you are selling the price will be quoted as T plus 4, this means you will receive your payment four business days after the transaction date.
Payment Instructions - Bank Sell
You can pay for your bonds as follows:
  • Cash
  • Personal or cashier's cheque of other banks payable to Bangkok Bank Public Company Limited before 12.00 pm.
  • Personal or cashier's cheque of Bangkok Bank payable to Bangkok Bank Public Company Limited before 2.00 pm.
  • Direct debit if the account is held in the Bangkok Metropolitan area before 3.00 pm.
Payment Instructions - Bank Buy
You can have your funds credited to you as follows:
  • Money transfer into customer's account at BBL
  • Cashier's cheques
Note: 15% withholding tax will be deducted for capital gain when the bonds are sold at a profit.
Types of bonds
* Government bonds
* State enterprise bonds (MOF and non-MOF)
* Corporate debentures (also known as corporate bonds)
 
Disclaimer
Although financial instruments offer the prospect of higher returns they are not a bank deposit and bears some risks.  You may get a return which is greater or lesser than your initial investment.


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