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Perpetual bonds getting more popular in Thailand


Perpetual bonds are increasingly popular among corporate issuers with a long-term nature and relatively lucrative returns compared to plain vanilla bonds. There are currently 16 series of outstanding perpetual bonds registered with the Thai Bond Market Association (ThaiBMA), with a total value of THB99.08bn (USD2.9bn), representing 2% of total corporate bonds. Perpetual bonds benefit the company's structure management in long-term investment plans. Most perpetual bonds have offered high returns, making them suitable for high-net-worth individuals who seek products with relative returns. ThaiBMA senior vice-president Sirinart Amorntham said the advantages for companies that raise funds by issuing perpetual bonds is that in the first five years of issuance, half of the fundraising from the bond will be recorded as debt and the balance as equity.

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