The Public Debt Management Office (PDMO) will offer the first batch of the government's savings bonds for fiscal 2022 on Nov 15, said PDMO director-general Patricia Mongkhonvanit.
Mrs Patricia added that the PDMO will offer the total savings bonds of 150 billion baht in fiscal 2022, of which 80 billion baht will be up for grabs in the middle of this month and the rest during May and September 2022.
The bond issuance is to offset the balance budget deficit in fiscal 2022.
Of the total 80 billion baht, bonds worth 10 billion will available to individual investors on the "Sasom Bond Mung Kung" e-wallet, abbreviated to "Sor Bor Mor" in Thai, on Krungthai Bank's Pao Tang mobile application. The bonds will be available during Nov 15-Dec 3.
The bonds will be split into two types. The first offers a five-year maturity with a step-up interest rate of 2.1% per year. The second carries a 10-year maturity and step-up interest rate of 3%. Both will pay interest every three months.
Investors can invest a minimum of 100 baht and up to 10 million baht maximum.
Of the remaining 70 billion baht, bonds worth 55 billion baht will be for individual investors and split into two types.
They will be offered during Nov 22-Dec 3 at the four dealer banks' counters and their mobile banking apps.
The distribution will be conducted by dealer banks -- Krungthai Bank, Bangkok Bank, Kasikornbank and Siam Commercial Bank. Investors can invest at a minimum of 1,000 baht with no maximum limit.
The first type offers a five-year maturity with a step-up interest rate of 2.1% per year. The second one carries a 10-year maturity and step-up interest rate of 3%. Both will pay interest every three months.
The remaining 15 billion baht of bonds will be for non-profit organsations specified by the Finance Ministry. The distribution period is during Nov 24-Dec 3. They will carry a 10-year maturity period with a flat interest rate of 2.20% per year. The interest payment is every six months.
They will be on offer only at the counters of the four bank dealers. Investors can invest at a minimum of 1,000 baht with no maximum limit.
The investors can invest on both the bonds available via the e-wallet and the bank dealers.
In a separate development, the cabinet approved spending of 237 billion baht out of the 500 billion baht borrowed under the second emergency loan decree.
Of the total 237 billion baht, the PDMO borrowed 144 billion baht in fiscal 2021, of which 130 billion baht was disbursed.
Thailand's debt-to-GDP ratio stood at 57.9% at the end of fiscal 2021, ending on Sept 30.
The PDMO estimated that the ratio will soar to 62% in fiscal 2022 if the country's new total borrowing reaches 1.12 trillion baht in that fiscal year.
However, if it will reach 62% also depends on GDP growth in fiscal 2022.
