BOT to issue interest-based bonds based on the overnight repurchase or THOR for the first time in March ’64 With the auction of the 6-month bond with the amount of 30,000 million baht. “CIMB Thai” revealed in conjunction with the Siam Commercial Bank. The interbank loan transaction under THOR amount of 1.5 billion baht is the first transaction in the Thai financial market. “Kasikornbank” reveals its success in issuing short-term debentures based on the interest rate THOR, ready to continue the transaction.
Ms. Wachira Aromdee Assistant Governor Financial market line The Bank of Thailand (BOT) revealed that the BOT will start issuing new bonds. The interest rate based on the Thai Overnight Repurchase Rate (THOR) for the first time in March 2021, a significant step in promoting the use of the THOR reference rate in financial transactions. It also adds financial products and interest rate risk management tools to the financial markets.
The BOT set a 6-month auction of THOR reference interest rate bonds on March 25, 2021, in the amount of 30,000 million baht, which is open to institutional investors such as commercial banks, mutual funds, insurance companies, etc. in the next phase. Auction of such bonds regularly. And will consider increasing the credit limit Auction frequency And the age of the bond If demand for investment from different groups of investors increases in the future
Mr. Jongrak Rattanaphian Senior Executive Vice President Kasikornbank revealed that after the bank successfully issued short-term debentures based on the Thai Overnight Repurchase Rate (THOR) as the first bank at the end of last year. On February 19, 64, Kasikornbank and Siam Commercial Bank entered into a Private Repo transaction based on the THOR interest rate, the first transaction for the Thai financial market.
Its main objective is to support the development of the money market and to strengthen the market liquidity to support the use of the THOR reference rate, which is in line with the policy of the Bank of Thailand (BOT) by developing new financial products To support the termination of the release of LIBOR and THBFIX interest rates that will occur in the near future. The Bank places great emphasis on development and preparation. To build confidence among market participants and the public in supporting the continual transition of the new reference interest rate.
Mrs. Wanthicha Pothanan, business executive of the financial market Chee IMB Thai Bank Public Company Limited, Chief Financial Officer and Chief Financial Officer, revealed that the bank has maintained its leadership in the THOR (Thai Overnight Repurchase Rate) market. The interbank loan transaction based on the THOR reference rate in conjunction with the Siam Commercial Bank is the first transaction of the Thai money market since the reference rate was released.
For the Interbank loan transaction based on the THOR reference rate, this time total amount of 1,500 million baht occurred during February 18-25, 2021. The transaction reinforces the Bank’s position as a leader in the Thai money market. And responds to the policy of the Bank of Thailand (BOT) in raising the Thai benchmark interest rate And as part of supporting the termination of LIBOR interest rate dissemination
In addition, the Bank continues to educate customers about the reference interest rate THOR. To prepare customers While also preparing for additional work systems To expand the coverage of loan and deposit products that refer to the interest rate, the reference rate THOR (Cash Products with THOR index) with customers.