Amid global economic challenges, political tensions, and the global rising interest environment, Krungsri and Hattha Bank have jointly analysed the growth potential of ASEAN markets, as well as demands from institutional investors, and this has led to Hattha Bank's Baht-denominated bond offering in Thailand. This is also in line with the Asian Bond Markets Initiative (ABMI), one of the financial cooperation frameworks among ASEAN member states and China, Japan and South Korea (ASEAN +3) to support the issuance of regional local currency (LCY) bonds and sustainability bonds. The frameworks also support the investments in local currency bonds to enhance financial liquidity among member countries.
Mr. Seiichiro Akita, Krungsri President and Chief Executive Officer said, "Krungsri has a clear plan to connect and develop a strong financial network across ASEAN which will widen opportunities for entrepreneurs and investors to grow with us. Hattha Bank's Baht-denominated Bonds offering in cooperation with Krungsri is another key milestone for us as a regional bank, and it is an alternative investment for investors on ASEAN credit papers. This demonstrates how Krungsri uses our network and expertise to analyze and develop products to meet the needs of the capital market and also support the region's economic and fiscal stability."
Hattha Bank is the first financial institution from Cambodia to offer Baht-denominated Bonds to Thailand's institutional investors. The bond was offered for sale in October 2022 and was rated at "BBB+" by TRIS Rating. The Baht-denominated Bonds were approved by the National Bank of Cambodia (NBC), the Securities and Exchange Regulator of Cambodia (SERC), the Ministry of Finance of Thailand, and the Bank of Thailand, to be able to issue Baht-denominated Bonds and allow cross-border bond transactions.
Source: Spark Communications
