The Public Debt Management Office (PDMO) looks set to issue "Savings Plus" bonds worth 2 billion baht per month, offering an interest rate of around 2%, with the aim of promoting savings among small retail investors.Jindarat Viriyathavikul, director-general of the PDMO, said the model it initially considered -- selling bonds through the Bond Connect system, which is regulated by the Bank of Thailand and the Securities and Exchange Commission -- could have created difficulties for the public.
Investing through Bond Connect requires investors to open a securities trading account, raising concerns about access and the time needed to educate the public about how the system works.
As a result, PDMO decided to switch the distribution channel to Krungthai Bank's Paotang mobile app, which has more than 40 million users. The app is widely used, even among the elderly, she said. Access to savings bonds still follows the first-come, first-served principle via the app.
People can also buy the bonds at bank counters, as in the past, making access as easy as depositing money, said Ms Jindarat.
Regarding issuance volume, she said although the initial phase was delayed, the bonds will definitely be issued for the remainder of the fiscal year. The bonds are expected to be issued on a monthly basis for three months, at around 2 billion baht per month.
