The Bank of Thailand was forced to reduce the size of last month’s public savings bond issue to 29.9 billion baht from 50 billion due to weak demand.Suchada Kirakul, an assistant central bank governor, said yesterday that the reduced issue was split into 12.2 billion baht worth of four-year bonds with a coupon of 3.75% and 17.77 billion in seven-year bonds paying 4.5%.
The public savings bonds were offered from Feb 18-26 through nine commercial banks. Subscriptions were restricted to Thai residents and non-profit organisations.
We should note that the government thinks that a large part of the “mega projects” could be financed on the domestic market by… public bonds. It might not be as simple…
However, good news, with the removal of capital controls, foreigners will be able again to enter freely the bond market. That could help. 
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