Bangkok, 2 January 2024 – The Securities and Exchange Commission (SEC) has amended the regulations on approval of offer for sale of newly issued bonds of foreign entities, effective from 1 January 2024.
- The Securities and Exchange Commission (SEC) has amended regulations to allow foreign issuers to directly apply for approval to sell Thai baht bonds in Thailand without prior approval from the Ministry of Finance.
- Foreign issuers of baht bonds must obtain an investment grade rating from an international credit rating agency, appoint a bondholder representative, and register the bonds with the Thai Bond Market Association.
- The criteria for issuing and selling foreign currency-denominated bonds by foreign entities in Thailand have been aligned with the amendments to the baht bond offering regulations.
The amendments aim to enhance suitability for the risk profile of the foreign issuer and alignment with the changing contexts and landscape of the bond market. In this regard, five relevant notifications have been revised, containing the key amendments as follows:
The Securities and Exchange Commission (SEC) in Thailand has made amendments to its regulations regarding the approval of the offer for sale of newly issued bonds of foreign entities. The changes, effective from January 1, 2024, aim to improve suitability for the risk profile of foreign issuers and align with the evolving bond market.
The key amendments include allowing foreign issuers to directly apply for approval of bonds denominated in Thai baht without prior approval from the Ministry of Finance, requiring foreign issuers of baht bonds to obtain an investment-grade rating from an international credit rating agency, appoint a bondholder representative, and register the bonds with the Thai Bond Market Association.
The criteria for issuance and offer for sale of foreign currency-denominated bonds by foreign entities have also been aligned with the baht bond offering regulations. The amended regulations have been published in the Government Gazette.
Source : SEC amends regulations on approval of offer for sale of newly issued bonds of foreign entities
