Execution Results of 3rd Bond Switching in Fiscal Year 2019

Stocks and Financial Services Press Releases Friday June 28, 2019 16:32
Bangkok--28 Jun--Ministry of Finance
Mr. PoomsakAranyakasemsuk, Director-General of Public Debt Management Office (PDMO), Ministry of Finance, Kingdom of Thailand, has announced the successful completion of its 3rd Bond Switching transaction for

fiscal year 2019on 28th June 2019, the total amount of THB 10 billion. The highly successful result of this transaction has met all key objectives set by PDMO, namely to increase bond market liquidity in the medium and long-end of the curve, to reduce refinancing risk on shorter dated government debt, and to enhance government's overall debt portfolio management. In addition, ILB is set to be Source Bond on its first time which aims to improvegovernment securities diversification and expand investor base.This exercise received demand up to THB 33,539 million from investors, for examples, the Government Pension Fund, the Social Security Office, commercial banks, mutual funds, insurance companies, as well as institutional foreign investors. As a result,the transaction has effectively reduced source bondthat going to be matured in 2021 and switches to medium and long tenors of destination bonds, as follows;

1) Source Bonds
Source Bonds Term to Maturity Transaction Amount(THBmil.)
ILB217A 2years 10,000
2) Destination Bonds
DestinationBonds Term to Maturity Transaction Amount (THBmil.)
1. LB22DA 3years5months 130
2. LB28DA 9 years 5 months 1,500
3. LB316A 11 years 11months 2,370
4. LB326A 13 years 1,000
5. LB386A 18 years 11 months 5,000
Total 10,000
As of 28th June 2019 (Settlement Date)
This Bond Switching exercise accomplished these 4 following
objectives;
1. Liability Management: reduce bunching risk of source bonds that going to be matured within 2021 by issuing medium and long tenors destination bond.
2. Reduce Refinancing Risk: extending source bonds' average maturities from 2 years to 15 years 1 month by average maturities
3. Increase Market Liquidity: this Bond Switching exercise increases market liquidity in the Destination Bonds, which are 3 tenors of on-the-run benchmark bond such as 10, 15, and 20 years
4. Improve Bond Switching transaction: With ILB in this Bond Switching exercise, PDMOcan diversifygovernment securities in the transaction and expand investor base, especially private and provident funds.
PDMO together with the Joint Lead Arrangers, Bangkok Bank Public Company Limited, Krung Thai Bank Public Company Limited, and Standard Chartered Bank (Thai) Public Company Limited, would like to take this
opportunity to express its sincere appreciation to investors for the strong participation in this bond switching exercise andhope to receive the support in the next Bond Switching exercise in the future.

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