*The information shown is tended to be indicative and subject to change without prior notice.

For more information :

Khun Anchalee, Khun Soonthorn, and Khun Ladawan

Tel. 0-2343-4379-80, 0-2286-5221, 0-2286-5226

The information contained in this newsletter (sent by fax, e-mail or any other method of transmission) is privileged, confidential and protected from disclosure. Any further disclosure or use, distribution, dissemination or copying of this message or any attachment is strictly prohibited. It is understood that such information is not warranted in any manner whatsoever, is for the use of our customers only, and obtained from Internal and external research sources considered to be reliable. It is not necessarily complete and its accuracy is not guaranteed by United Overseas Bank (Thai) Public Company Limited.

Debt Securities Market

What is debt security?

Debt security means the written agreements to replay a loan, usually with interest, within a given time frame. Issuing a debt security is one way that governments, corporations and even individuals raise capital. The buyer would receive interest or discount from par value at the specific rate and time.

Bond Features

Issuer Par value or face value Maturity date Coupon payment rate Coupon payment frequency Bond type such as secured bond or unsecured bond Covenant

Government Debt Securities issued by Ministry of Finance Treasury Bills are short-debt instrument with maturity less than 1 year. The bills are issued on a discount basis. Government Bonds are medium to long-term debt instruments issued by the Ministry of Finance and risk-free asset. Bank of Thailand Bond (BOT Bond), Financial Institution Development (FIDF Bond) and State Enterprise Bond (SOE Bond) are medium to long-term debt instruments issued by other government agency. For State Enterprise Bond can be categorized into 2 types; guaranteed and non-guaranteed by the Ministry of Finance (MoF). Corporate Debt Securities are debt instrument with maturity more than 1 year and issued by corporation for raising fund from the market which under the SEC Act. Normally, the return from corporate bond must be higher than the government bond for the same tenor. The investor receives the credit spread (spread yield between corporate bond and government bond) for compensate the higher risk.

Please contact Fixed Income Sales Division at 02-343-4379-80 for more information