Government savings bonds worth about 10 billion baht were scooped up by retail investors in just 29 seconds this morning, when they went on sale online through the Pao Tang app at 8.30am, a new record, according to Patchara Anuntasilpa, director of Public Debt Management Office (PDMO).
The PDMO issued government saving bonds to the value of 40 billion baht, the second issue for the 2024 fiscal year. The bonds mature in either 5 years, earning 3% per year, or in 10 years, earning 3.40%. Interest is payable every three months.
Although today’s limit of 10-million baht in bonds are fully subscribed, Patchara said retail investors can still subscribe to another tranche, worth 25 billion baht, through six commercial banks from August 19th to 21st, with no upper limit on number of bonds (within the size of the tranche), but with a minimum of 1,000 baht.
The six commercial banks are Krung Thai, Bangkok, Kasikorn, Siam Commercial, Ayudhya and CIMB Thai.
If, however, subscriptions exceed 25 billion baht of the bonds available, the banks will allocate them in small lots first, until issue is fulfilled. Investors will be refunded the difference between the amount paid and value of the bonds actually received.
The remaining 5 billion baht in bonds, with 10-year maturity, are reserved for non-profit legal entities, which will be available for subscription on August 26th and 27th at the six commercial banks.
