Debt office issues B50bn in savings bonds

The Public Debt Management Office (PDMO) plans to issue “Ying Aom Ying Dai” (the more you save, the more you earn) government savings bonds worth 50 billion baht next month, aiming to use the funds to finance state projects to ease the impact of the pandemic.

PDMO director-general Patricia Mongkhonvanit said on Friday the interest rates of these PDMO bond tranches reflect the likelihood of higher market rates.

PDMO bonds offer an average annual interest rate of 1.80%-1.90% to individual investors, depending on bond terms. The office also offers bonds to non-profit organisations at an annual rate of 2.20%.

The special savings bonds are available via two channels: the “Sasom Bond Mung Kung” e-wallet, abbreviated as “Sor Bor Mor” in Thai on Krungthai Bank’s Pao Tang mobile app; and through four dealer banks.

The bonds available via e-wallet total 10 billion baht with a three-year term. They offer a step-up annual interest rate with an average of 1.80%. Eligible investors must be aged 15 or older.

Investors can buy a minimum value of 100 baht up to 10 million baht. The interest is paid quarterly and this bond tranche is slated for sale between July 5-23.

The office plans to distribute the remaining 40 billion baht from July 12-23 through four dealer banks — Krungthai Bank, Bangkok Bank, Kasikornbank and Siam Commercial Bank. Investors can subscribe for bonds at their counters, via internet banking or mobile banking apps.

The minimum for these bonds is 1,000 baht without a maximum limit. Interest is paid two times a year.

PDMO is splitting the bonds made available via banks into two tranches. The first tranche of 35 billion baht is for individual investors and carries a four-year term, with step-up average interest of 1.90% per year.

The second tranche of 5 billion baht is for non-profit organisations. The 10-year bonds offer a fixed annual interest rate of 2.20%.

Buyers of the bonds through the e-wallet can also make purchases at dealer banks if they want more than the e-wallet limit of 10 million baht.