The Public Debt Management Office (PDMO) looks set to issue "Savings Plus" bonds worth 2 billion baht per month, offering an interest rate of around 2%, with the aim of promoting savings among small retail investors.
Jindarat Viriyathavikul, director-general of the PDMO, said the model it initially considered -- selling bonds through the Bond Connect system, which is regulated by the Bank of Thailand and the Securities and Exchange Commission -- could have created difficulties for the public.
Investing through Bond Connect requires investors to open a securities trading account, raising concerns about access and the time needed to educate the public about how the system works.
As a result, PDMO decided to switch the distribution channel to Krungthai Bank's Paotang mobile app, which has more than 40 million users. The app is widely used, even among the elderly, she said. Access to savings bonds still follows the first-come, first-served principle via the app.
People can also buy the bonds at bank counters, as in the past, making access as easy as depositing money, said Ms Jindarat.
Regarding issuance volume, she said although the initial phase was delayed, the bonds will definitely be issued for the remainder of the fiscal year. The bonds are expected to be issued on a monthly basis for three months, at around 2 billion baht per month.
The new bonds have an interest rate of "around 2%", including for shorter-term maturities such as three years. The rate must be higher than standard government bonds and fixed deposit rates to remain attractive after tax considerations, said Ms Jindarat.
However, PDMO acknowledged concerns that savings bonds have a relatively higher cost compared with other types of government bonds, which was one reason for the delay and why issuance must be managed in line with fiscal discipline.
The average cost of the government's debt portfolio is 2.66%, slightly higher than last year's 2.6%. For fiscal 2026, the office plans to raise 1.26 trillion baht through regular government bonds and borrowing through term loans and promissory notes.
Global interest rates have been rising in line with the US policy direction, which also affected Thailand, noted the office. However, this is a minor factor as most creditors are domestic holders, accounting for 95%, said Ms Jindarat.
In terms of borrowing under the 400-billion-baht emergency loan decree, PDMO has already raised about 40 billion baht, consisting of 35 billion via promissory notes and 5 billion through term loans. The office expects to continue raising around 30 billion baht per month, depending on the government's cash requirements under the decree.
