Two foreign entities in the CLMV region are seeking approval from the Public Debt Management Office (PDMO) to issue baht-denominated bonds worth 50 billion baht.
The PDMO is considering the proposals, but whether the approved amount will be the same as the proposed amount depends on the countries' financial liquidity, said a source at the PDMO.
Both foreign entities applied to offer baht-denominated bonds on a special case basis.
The Finance Ministry normally opens applications for foreign entities to offer baht-denominated bonds three times a year -- in March, July and November -- but it recently opened a special application period from Sept 6 to Oct 6, with the aim of curbing the baht's rapid gains.
Foreign entities that win approval under the special application period are required to issue the baht-denominated bonds from Nov 1 until March 31 next year.
The issuers will only be allowed to use the proceeds in domestic transactions in baht terms and for onshore spot exchange.
The baht is the best-performing currency in Asia this year, up 8% against the US dollar.
The Finance Ministry in September approved the issuance of baht-denominated bonds by the Lao government and Nam Ngum 2 Power Co. Both foreign entities are required to issue the baht-denominated bonds or debentures in Thailand by May 31, 2018.
Separately, the Bank of Thailand has further loosened regulations on foreign exchange transactions by cancelling the foreign exchange form (FX form) and the requirement for commercial banks to stamp documents showing customer commitment to such transactions.
Vachira Arromdee, assistant governor of the financial market operations group at the central bank, said those who want to make foreign exchange transactions, such as buying, selling making deposits or withdrawals, with a value over US$50,000 (1.7 million baht) will not be required to fill out the FX form any more.
But commercial banks must issue documents as evidence for those transactions, such as invoices and receipts.
Ms Vachira said the change in regulations, which has been effective since Oct 18, is expected to streamline foreign exchange transactions and improve the competitiveness of Thailand's business sector.
