Key Benefits of Bonds

Low-risk investment

as issuers are government and state enterprises


Stable cash flows

for both amount and timing


Diversified investment risks

as you can effectively manage your investment portfolio 


Government Bonds

Loan Bonds
Loan bonds are debt securities issued by the Ministry of Finance. The main objectives are to finance the budget deficit in each fiscal year or when expenditures exceed revenue, to support social and economic development, and to restructure public debt.
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 and when the bond reaches maturity, interest and principal will be automatically credited into their deposit account as notified to the Bank.


The Ministry of Finance’s Savings Bonds


The Ministry of Finance’s Special Savings Bonds “Thailand Stays Strong” FY B.E. 2563

Prospectus Fact Sheet


The Ministry of Finance’s Special Savings Bonds FY B.E. 2563

Prospectus Fact Sheet


The Ministry of Finance’s Savings Bonds FY B.E. 2563 No.1

Prospectus Fact Sheet


The Ministry of Finance’s Savings Bonds FY B.E. 2562 No.2

Prospectus Fact Sheet


The Ministry of Finance’s Savings Bonds FY B.E. 2562 No.1 (Greenshoe No.2)

Prospectus Fact Sheet


The Ministry of Finance’s Savings Bonds FY B.E. 2562 No.1 (Greenshoe)

Prospectus Fact Sheet


The Ministry of Finance’s Savings Bonds FY B.E. 2562 No.1

Prospectus Fact Sheet

Central Bank Bonds
  • Central bank bonds are debt securities issued by the Bank of Thailand. Their main objective is to help manage fiscal policy and liquidity to maintain an appropriate interest rate in the economic system.
  • The bonds are short-term securities (durations of not more than one year) offering higher returns than deposit interest rates at certain times.

Corporate Debentures

Corporate debentures are long-term debt securities issued by state enterprises to raise capital.
They offer higher returns than bonds due to their higher risk.

Key Benefits

Stable cash flows

for both amount and timing

Higher returns

than other debt instruments due to the higher risk

Coupon rates

are subject to the credit ratings of the issuers

Additional Information

Investment Channels
  • The Primary Market is the market in which debt securities are sold to investors for the first time. Bangkok Bank is a selling agent for savings bonds and corporate debentures.
    • Savings Bonds
      • Subscriptions available to individual investors and/or non-profit organizations
      • Subscriptions available at Bangkok Bank branches, Bualuang iBanking, Bualuang mBanking, and Bualuang ATMs
    • Corporate Debentures
      • Subscriptions available for 1) Private Placement – Institutional, High-net-worth investors and PP10 (not more than 10 investors within any 4-month period); and 2) Public Offering
      • Subscriptions available at Bangkok Bank branches

  • The Secondary Market is the market in which existing debt securities are resold to other investors. The Bank provides the following services:
    • Selling some series of bonds and corporate debentures to individual investors
    • Selling short-term debt instruments (central bank bonds) to juristic entities
    • Buying government bonds and savings bonds from customers prior to maturity
Taxation
  • Individual Investors
    • Interest income is subject to withholding tax of 15%.
    • Capital gain 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. So, 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.

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