Thai Energy Sector to Lead Bond Sales in 4Q as Sentiment Improves, Says ThaiBMA

Tada Phutthitada stated that in the past nine months of 2020, foreign investors made a net out flow of 71,229 million baht in the bond market, even though the amount of 39,444 million baht of fund flow was recorded in 3Q20. Meanwhile, the energy sector was the top issuer for the past four years.

 

Mr. Tada Phutthitada, President of the Thai Bond Market Association (ThaiBMA), stated that the bond market has seen a recovery in foreign investors by injecting 39,444 million baht of fund flow mostly in the long term debt instrument. However, the bond market still recorded a net out flow of 71,229 million baht from foreign investors this year, consisting of 7,260 million baht for the long term debt instrument and 64,039 million baht

“The energy sector is the top issuer in the past four years due to the demand for further investment in the alternative energy business, while the banking sector is the least issuer when compared to the same period last year,” added Mr. Phutthitada.

 

Ariya Tiranaprakij, the Executive Vice President of ThaiBMA, stated that Thai energy companies are expected to lead bond sales in 4Q as investor sentiment for such debt securities improves. Local corporate bonds are unlikely to experience any defaults this year as some companies have already received investor approval to postpone repayments.

Meanwhile, Laos government already paid its baht-denominated bonds due last week, and it should be able to refinance those bonds in 2021 on optimism that public finances there will improve, stated Tiranaprakij.