BANGKOK: State-owned Islamic Bank of Thailand plans to offer 5 billion baht (US$155 million) of five- to seven-year Islamic bonds in the Thai market this year, its chief executive, Dheerasak Suwannayos, said on Tuesday, June 22.
In February he had said the issue, which would be the country's first Islamic bond, was planned for the second quarter but the process has been held up by political unrest in Bangkok.
However, the bond is awaiting approval from the Securities and Exchange Commission (SEC) and Dheerasak said that was expected soon.
"We are ready and will definitely issue the bonds, subject to SEC approval, which will come not too long from now. The timing will also be up to the liquidity and money supply situation," Dheerasak told Reuters.
Finance Minister Korn Chatikavanij's recent decision to drop plans to issue bonds to help fund 400 billion baht in stimulus programmes would help ease the bank's funding costs as it reduces bond supply pressure, Dheerasak said.
"It works in favour of our planned issue as it will ease upward pressure on local bond yields."
The Islamic bank chief did not expect Thai bank interest rates to rise soon despite speculation the Bank of Thailand would raise its policy rates in July or August from the current record low of 1.25% to tackle inflation.
"I don't think Thai commercial rates will rise at all this year," he said.
Dheerasak said his 28-branch bank was awaiting Finance Ministry approval to expand into more retail services, which had been delayed by tax questions. ' Reuters
In February he had said the issue, which would be the country's first Islamic bond, was planned for the second quarter but the process has been held up by political unrest in Bangkok.
However, the bond is awaiting approval from the Securities and Exchange Commission (SEC) and Dheerasak said that was expected soon.
"We are ready and will definitely issue the bonds, subject to SEC approval, which will come not too long from now. The timing will also be up to the liquidity and money supply situation," Dheerasak told Reuters.
Finance Minister Korn Chatikavanij's recent decision to drop plans to issue bonds to help fund 400 billion baht in stimulus programmes would help ease the bank's funding costs as it reduces bond supply pressure, Dheerasak said.
"It works in favour of our planned issue as it will ease upward pressure on local bond yields."
The Islamic bank chief did not expect Thai bank interest rates to rise soon despite speculation the Bank of Thailand would raise its policy rates in July or August from the current record low of 1.25% to tackle inflation.
"I don't think Thai commercial rates will rise at all this year," he said.
Dheerasak said his 28-branch bank was awaiting Finance Ministry approval to expand into more retail services, which had been delayed by tax questions. ' Reuters
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