Thai bond issuance is set to reach a record high this year of 1.3 trillion baht ($34.46 billion) as borrowers race to lock in costs as the economy recovers, an industry body said on Monday.
"Interest rates are rising, so people are locking up costs because the longer you wait, the higher the costs," said Ariya Tiranaprakij, senior vice president at Thai Bond Market Association.
The previous record was 1.08 trillion baht in 2019. In the first nine months of 2022, the private sector issued bonds worth 997 billion baht, up 22% from the same period a year earlier.
"Companies have issued at least 50 billion baht and there will be more from rollover in the last quarter so this year we should reach at least 1.3 trillion," Ariya said.
The Bank of Thailand in September raised policy rates another 25 basis points to 1.00% and has said that it was willing to adjust tightening if necessary.
