than other debt instruments due to the higher risk
are subject to the credit ratings of the issuers
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.
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%.
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.
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 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.
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.
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.
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