Companies in Thailand are expected to sell about 800 billion baht ($24 billion) of bonds this year, more than previously expected, as the central bank keeps interest rates near record lows, the Thai Bond Market Association said on Wednesday. The ThaiBMA had earlier forecast corporate debt issuance of between 700 billion and 720 billion baht this year, after last year's record 830 billion baht, President Tada Phutthitada told reporters.
"With interest rates slow to rise, companies have time to adjust their short-term costs to longer-term ones," he said. Rising corporate debt issues should continue to depress lending at banks, whose loans to large firms contracted in the first quarter of this year. In January-June, companies sold bonds worth 444 billion baht, up 1.4 percent from a year earlier, Tada said.
The Bank of Thailand has left its benchmark interest rate unchanged at 1.50 percent for more than three years. Most analysts expect no policy change throughout 2018, though some see a small increase.