Business Services Industry

Low Rates Fuel Corporate Bond Issues in Thai Finance Market.

Knight Ridder/Tribune Business News, July, 2003

By Darana Chudasri, Bangkok Post, Thailand Knight Ridder/Tribune Business News

Jul. 16--Low interest rates are attracting corporate bond issuing to refinance higher costs of funds, according to Tawit Thanachanan, first senior vice-president at Kasikornbank.

Most market watchers had earlier expected corporate bond issues this year to fall short of the total of 100 billion baht reached last year.

But low interest rates have led to a flurry of new deals from companies looking to refinance existing debt and lock in lower funding costs.

"The primary bond market has been a surprise. With interest rates low, many companies are looking to refinance debt," Mr Tawit said.

Three-year reference yields on the Thai Bond Dealing...

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