Corporate bond issuance estimated at B850-900bn

The Thai Bond Market Association (ThaiBMA) projects the value of corporate bond issuance will range between 850-900 billion baht in 2025, similar to the previous year, amid the economic slowdown and uncertainty from the recent earthquake.

- NUNTAWUN POLKUAMDEE

The recapitalisation calls announced by US President Donald Trump last week may impact property developers, potentially leading to credit rating downgrades.

Ariya Tiranaprakij, executive vice-president of ThaiBMA, said small companies will face greater challenges raising funds through the bond market during the economic slowdown.

She said investors are shifting away from high-yield bonds and focusing more on those with high credit ratings.

In contrast, large corporations are increasingly opting to issue and offer bonds through public offerings (POs), especially as retail customers seek better interest rates, clearly observing.

For example, Gulf Energy Development raised 30 billion baht through a bond PO in the first quarter.

"With global uncertainty affecting the stock market, including trade wars, US tariff hikes and the earthquake, some investors, both local and foreign, have shifted their investments back into the bond market as a secured asset," said Ms Ariya.