Key Benefits
Invest in government bonds issued for the first time in the market. The issuers include the government, the Bank of Thailand and state-owned enterprises. Investors can subscribe during the offering period set by the issuers.
Low-risk investment
as issuers are government and state-owned enterprises
Stable cash flows
Get the full principal at maturity and regular interest payments
Diversified investment risks
as you can effectively manage your investment portfolio
Primary Market Government Bonds
Government Savings Bonds
Saving bonds are debt securities issued by the Ministry of Finance, the Bank of Thailand, and government agencies. The main objective is to offer an investment or savings alternative for individuals and non-profit organizations. Scripless bonds are currently available – bond holders will receive bond books as evidence of their bond subscriptions. When the bond reaches maturity, the interest and principal will be automatically credited into their deposit account as notified to the Bank.
Subscription Channels
Subscriptions are available for individual investors and/or non-profit organizations. The sales channels are as follows:
Bangkok Bank Branches
(except Micro Branches)
Bangkok Bank Mobile Banking
Bualuang iBanking
Bualuang ATM
Additional Information
Taxation
Individual Investors
- Interest income is subject to withholding tax of 15%.
- Capital gain is subject to withholding tax of 15%.
- For discount bond, return on discount is subject to withholding tax of 15%.
Juristic Entities
- Interest income is subject to withholding tax of 1% and will be included in the calculation of net profit for the purpose of company income tax.
- Return on discount is exempt from withholding tax but will be included in the calculation of net profit for the purpose of company income tax.
- Capital gain is exempt from withholding tax but will be included in the calculation of net profit for the purpose of company income tax.
Investment Risks
Market Risk
The prices of debt securities move in the opposite direction to market interest rates. Therefore, when investors want to sell debt securities prior to maturity and the current market interest rate goes up, they may need to sell at lower prices than that in the market.
Credit Risk
Credit risk is the risk that a debt securities issuer is unable to repay principal and/or interest in a timely manner. This includes the risk that an issuer's credit rating is lowered while their debt security has not reached maturity. Government debt securities have very low credit risk, so their returns tend to be lower than those of corporate debt securities.
The prices of debt securities move in the opposite direction to market interest rates. Therefore, when investors want to sell debt securities prior to maturity and the current market interest rate goes up, they may need to sell at lower prices than that in the market.
Credit Risk
Credit risk is the risk that a debt securities issuer is unable to repay principal and/or interest in a timely manner. This includes the risk that an issuer's credit rating is lowered while their debt security has not reached maturity. Government debt securities have very low credit risk, so their returns tend to be lower than those of corporate debt securities.
Notes
Investments carry risk. Investors are strongly advised to study the investment product, its characteristics (including returns), conditions and risks before making an investment decision. For more information, please call us at 1333 or 0 2645 5555.
Investments carry risk. Investors are strongly advised to study the investment product, its characteristics (including returns), conditions and risks before making an investment decision. For more information, please call us at 1333 or 0 2645 5555.
Related Investment Options For You
Secondary Market Government Bonds
Another option to invest in
government bonds in the secondary market with low risk and the opportunity to earn consistent returns. We offer a pre-maturity buying service to increase efficiency in managing your investment portfolio.
Primary Market Corporate Debentures
Corporate debentures are long-term debt securities issued by private entities to raise capital. They offer higher returns than government bonds commensurable with their higher risk.
