ThailandÆs ETA issues low yield guaranteed bonds

ETA, Thailand’s state-owned operator of roads, the rapid transit railway system and certain boat routes, returned to the market this week with a Bt800 million ($18.6 million) issue of state enterprise bonds. Bangkok Bank, who underwrote the deal, was the sole buyer. The five-year bonds, guaranteed by the government, carry a face value coupon of 3.59%, which in real terms yields 3.60% because of Bangkok Bank’s 0.1% fees.

The low yields highlight the fact that now is a very good time to be an issuer in Thailand. “We’ve seen a steep fall in yields and there is tremendous demand from investors for assets,” explained a local banker. “There is huge liquidity in the market and investors are desperately looking to find homes for their money.”