Bangkok--3 Jan--SET Bond Electronic Exchange (BEX) of The Stock Exchange of Thailand (SET) reports that 2007 trading turnover increased 616% over 2006, and 90% of the bonds issued that year were by the public sector. To promote more corporate issuers, the BEX will study impediments limiting private sector bond issuance. It will also support tax privileges for retail investors to increase retail participation in the market. Total BEX trading turnover in 2007 was THB 290.3 billion (USD 8.57 billion), up 616% from 2006’s THB 40.6 billion. In 2007, THB 290 billion (USD 8.56 billion) was executed by institutional investors, with the remaining THB 275.71 million by individuals. The daily bond trading turnover in 2007 was THB 1.27 billion (USD 37.48 million) compared to 2006’s daily average of THB 168 million with trading concentrated in Bank of Thailand bonds, government bonds, and treasury bills respectively. “BEX will aim to develop the bond market to be an efficient pillar for the Thai economy, to be a more liquid and attractive market for both local and foreign investors”, Mr. Santi Kiranand, BEX CEO, emphasized. “In 2007, total bonds registered on BEX were worth THB 3.9 trillion (approx. USD 115.11 billion), up 11% from 2006’s THB 3.5 trillion,” he noted. “Currently the outstanding value of all registered bonds is THB 3.7 trillion (USD 109.21 billion), 90% of which is from the public sector. BEX is studying what hinders private-sector issuers. We want businesses to utilize the bond market more efficiently as well as to increase the bond market’s supply variety. Waiving bond listing and trading fees for one more year, until end-2008, will help boost the market as well,” Mr. Santi said. In 2008, BEX will develop and integrate its Fixed Income and Related Securities Trading System or ‘FIRSTS’ to better serve institutional investors. For example, BEX’s system will be directly connected to the Thailand Securities Depository Co., Ltd. (TSD)’s system. BEX will also push for a government-level agreement to link the Thai and Singaporean bonds markets by 2010. Other plans for 2008 include eliminating tax issues for retail investors and creating a portfolio management tool for them. In 2008, the Thai Ministry of Finance will issue bonds to both stimulate the Thai economy and to create a benchmark yield curve for the overall Thai bond market. BEX estimates that there will be about THB 2.609 trillion (USD 77.01 billion) in bonds issued in the primary market. For private sector bonds including commercial paper, this is expected to be THB 1.0 trillion (USD 29.52 billion) as businesses, especially the property development, energy, hire-purchase and banking sectors, increase fundraising, with interest rates expected to remain low for now by historical standards. “Bond issuance should be active starting early 2008. Interest rates should start to pick up in the middle of the year. And, if the Bank of Thailand considers removing its short-term capital control measures, the bond market should be positively affected,” Mr. Santi added. Over January-November 2007, total baht-denominated bonds issued domestically totaled THB 5.78 trillion (USD 170.60 billion), up 122% from 2006. Major issuers were public sector groups raising funds through treasury bills, government bonds, or state enterprise bonds. Meanwhile the private sector issued bonds including commercial paper worth THB 1.087 trillion (USD 32.08 billion), a 51% increase from 2006. Other Baht-denominated bonds issued by foreign institutions totaled THB 7.4 billion (USD 218.42 million). Business sectors active as major bond issuers (ranked by issue size) were: banking, energy, insurance, telecommunications, property development and transportation. For more information, please contact the Corporate Communications Dept.: Ladawan Kantawong Tel: 0-2229-2036 / Kulvida Jintakawong Tel: 0-2229-2037 / Nattaporn Boonprapa Tel: 0-2229-2049 / Watsamon Saowakhonsathien Tel: 0-2229-2797