The Public Debt Management Office (PDMO) plans to issue "Om Plus" (Savings Plus) government bonds worth 8 billion baht during the current fiscal year to encourage Thais to save consistently.
According to Jindarat Viriyathavikul, director-general of PDMO, Om Plus allows the public to purchase government bonds on a monthly basis and will replace the traditional savings bonds previously issued, which were not offered for sale monthly.
The new bonds are to be distributed through PDMO Wallet on the Paotang app and the Bond Connect Platform, marking the first time government bonds are offered through a fully digital platform.
The inaugural issuance comprises three-year and 10-year bonds. Coupon rates are scheduled to be announced later this month.
The first tranche of 4 billion baht is slated to be offered in early August, followed by a second 4-billion allotment in early September.
Government bond yields are 1.24% for three-year bonds and 1.97% for 10-year bonds, both of which exceed bank deposit returns, while maintaining a high level of security.
"The Om Plus bonds are designed to offer the public easier access to government bonds, which are among the safest financial products backed by the government. They also encourage Thais to save regularly and continuously, leading to greater long-term financial security," Mrs Jindarat said.
Most Thais do not have savings sufficient to cover six months of essential expenses, while household debt remains high at 86% of GDP, she noted.
Om Plus is intended to serve all segments of the population, including workers, retirees and salaried employees.
Investors benefit from returns that are more attractive than traditional savings products, while a secondary market is available to provide liquidity for those wishing to sell their bonds before maturity, said Mrs Jindarat.
The bonds are available on PDMO Wallet on the Paotang app, a platform familiar to retail investors.
A total of 2 billion baht is slated for allocation via this channel on a first-come, first-served basis. The minimum subscription is 100 baht, while the maximum investment is 50 million baht per person.
The bonds are also available on the Bond Connect Platform, a new channel jointly developed by PDMO, Settrade.com Co, the Bank of Thailand and Thailand Securities Depository Co.
Investors can subscribe through participating commercial banks, securities companies or the streaming application.
Another 2 billion baht is allocated through this channel under the small lot first allocation method. The minimum subscription is 1,000 baht, and anyone with a Thai securities trading account can subscribe immediately, with no maximum investment limit.
However, allocations are in 1,000-baht increments until the issuance is fully subscribed.
Proceeds from the bond issuance are to finance the government's budget deficit, she said.
