PeerPower has been approved by the Securities and Exchange Commission (SEC), and offers short-duration bonds of 6 to 24 months with coupon rates between 8% and 22%, based on the credit risk of the issuer.
Crowdfunding bonds provide a steady cash flow on a monthly or quarterly basis. The ones offered through PeerPower are usually amortizing bonds, where the principal is repaid at regular intervals along with the interest, unlike traditional bond issues in which the principal is only returned upon maturity. The minimum investment amount is 50,000 baht per bond.
Investors who wish to use the PeerPower platform have to pass a suitability test to determine their risk appetite and investment experience before they are accepted. Investors can benefit from diversifying their portfolios, by choosing various local SMEs across different sectors.
Every Thai company that raises funds through this platform undergoes rigorous screening by PeerPower, including an analysis of its business profile, financial statements and the related industry trends. The major shareholders are independently verified, with their profiles disclosed in the bond prospectus provided on PeerPower’s platform, and potential investors can learn about the company’s business model and financial projections.
One of the investors using PeerPower, the CFO of a software company, told us: "It's time to invest in crowdfunding bonds through PeerPower’s platform, which has been approved by the SEC. I receive monthly payments, including interest, and the duration of the bonds is shorter than some of the corporate bonds that I know of.”
"Investment in a crowdfunding bond is no different to investing in the business directly. Instead of buying shares in one company, we can diversify across a variety of business platforms, such as e-commerce and digital content. PeerPower is a user-friendly platform that provides a clear risk rating, along with information related to the business, which makes it easy to decide what to invest in.”
Mr. Vorapon Ponvanit, the founder and CEO of PeerPower, said: "PeerPower integrates tech and financial know-how to make crowdfunding bonds accessible to investors. They can pick and choose creditworthy businesses, and build a diversified portfolio of crowdfunding bonds to provide a steady cash flow.”
PeerPower is currently developing a mobile application that will enable easy access to its platform and the latest opportunities to invest in crowdfunding bonds.
As investors search for better yields, there has been a growing market awareness of crowdfunding bonds as an asset class. Investment opportunities have become more varied, while the user experience has been improved by the application of the latest technology.
For more information, please check the website www.peerpower.co.th or contact one of PeerPower’s investment managers at 02-026-3514 ext.2.
