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
Subscription Channels
Primary Market Corporate Debentures are offered to
- Institutional and High Net Worth investors (Private Placement): These corporate debentures are offered to institutional investors such as financial institutions, mutual funds, pension funds, and insurance companies. High net worth investors as defined by Securities and Exchange Office are also eligible to invest in these bonds.
- General public (Public Offering): Debentures offered to public can be subscribed to by any investor, including retail investors.
Bangkok Bank Branches
(except Micro Branches)
Bangkok Bank Mobile Banking
Other 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. Corporate debentures have credit risk, so their returns tend to be higher than those of government 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. Corporate debentures have credit risk, so their returns tend to be higher than those of government 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
Primary Market Government Bonds
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.
Secondary Market Government Saving Bonds
Another option to invest in
government saving 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.
Secondary Market Bonds
Increase your options by investing in pre-maturity bonds in the secondary market and manage your portfolio more efficiently.
TOOLS & ASSISTANCE
We are ready to help you.
TOOLS & ASSISTANCE
We are ready to help you.
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