Thai market regulators, Securities and Exchange Commission (SEC), together with Thai Bond Market Association (Thai BMA), aim to tighten their restrictions on corporate bonds or debentures, as the new proposed rule will force the bond issuers to further disclose their company key financial ratios to better reflect their credit ratings.
Furthermore, the Public Offering (PO) or the investment grade rating criteria will be hiked from at least BBB to at least A. Surely, this will affect all listed companies that wish to raise their capital through the bond market. However, the new rule is still under the public hearing process.
DAO Securities’ analysts saw 56 companies that need BBB bonds for their funding which added up to 10% of the total bond worth of THB 4.4 trillion in September. Most of these companies are in the Finance and Real estate sectors, for example, MTC, SAWAD, SCAP, JMT, JMART and BRI, LPN, NOBLE, ORI, S, SIRI, respectively.