Key Highlights:

• The estimated value of corporate bonds to be offered in November 2024 is expected to exceed 100 billion baht.
• In October 2024, newly issued corporate bonds amounted to approximately 54 billion baht, a decrease of 14.22%(MoM) and 14.72%(YoY). This reflects a slowdown in the growth of the corporate bond market following the Bank of Thailand’s (BOT) interest rate cut on October 16, 2024.
• Notably, new corporate bonds to be offered in November include Perpetual Bonds, such as those issued by BGRIM.
• 2 companies have requested to deferred payment of their bonds.
• 6 companies have experienced credit rating downgrades.

Figure 1 : New registered bonds (THB Billion)

(Source : FynnCorp IAS’s compilation from SEC and ThaiBMA)

• By comparing the maturity of bonds each year with the newly issued bonds in the same year, we found an average ratio of approximately 59% over the past 9 years (excluding the COVID-19 period). In 2024, maturing bonds have a value of 890 billion baht. Based on this ratio, the estimated value of newly issued bonds in 2024 should be around 1.5 trillion baht. However, in the first 10 months of 2024, the total value of newly issued bonds was 810 billion baht. Therefore, we expect to see the issuance of bonds exceeding 100 billion baht in the remaining two months of this year.

Figure 2 : Maturity Vs. New Registered Bonds (THB Billion)

(Source : FynnCorp IAS’s compilation from SEC and ThaiBMA)

2 companies, SNW and A, have requested a deferral in their bond payments.

• At the bondholders’ meeting of SNW, Siam Nuwat Co., Ltd., it was resolved to defer the payment of all three bond series
  • SNW224A by an additional 10 months and 4 days
  • SNW231A by an additional 1 year
  • SNW233A by an additional 1 year
• Additionally, the bond interest rate was increased from 8.00% per annum to 8.50% per annum. Furthermore, a waiver was granted allowing the bond issuer to not maintain an interest-bearing debt-to-equity ratio of no more than 5:1, which is expected to appear in the 2024 annual financial statements.

• At the bondholders’ meeting of A, Ariya Property Public Company Limited, it was resolved to defer the payment of all 14 bond series.
• Agenda item 1: Consider and approve a waiver allowing the bond issuer to propose to the bondholders’ meeting to approve an extension of the maturity date of all 14 bond series by an additional 2 years from the original maturity date. This case is considered as the commencement of negotiations or the entering into of any agreement with creditors for the purpose of restructuring debt, which is in the nature of a waiver of the bond issuer’s debt repayment, including the postponement or change of the payment due date, with a total debt exceeding 400,000,000 baht, in accordance with clause 11.1.10 of the bond terms and conditions, shall not be considered a default under such terms and conditions.
• Other agenda items of all 14 series were either approved or disapproved, and some meetings were postponed due to insufficient quorum. For more details, please visit https://www.thaibma.or.th/EN/News/Detail.aspx?id=4b269ccf-4a90-ef11-a31e-a4821249f081

Figure 3 : Outstanding Value of Long-term Bond with Maturity by sector