So the Thailand Future Fund is delayed…
Delays from this government no longer surprise me…
We can’t say when the fund will be launched as it depends on the court’s decision,” Ekniti said in an interview Thursday, adding he still hopes it will start in time to finance two expressway projects by September. Ekniti has been overseeing the fund’s development.
Thailand’s Cabinet approved the fund last year, and said it would initially finance two expressways linking Bangkok to areas in the west and east, worth a combined 45 billion baht. Finance Minister Apisak Tantivorawong has said the fund will offer a yearly return of 7 percent to 8 percent.
There might be a significantly longer wait to get road projects underway if the country relies only on the expressway authority, according to Ekniti.
Source: Bloomberg
Impact?
- Well the usual, contractors and construction material related companies.
Ruud
Sorry Pon but can you clear this up for me. I do not know much about Thai government bonds but this seems a very high return to me.
7 to 8 percent for a government bond ? Who are the main suppliers for this fund ?
Pon
institutions, individuals, everyone, it is supposed to be open to the public for subscription.
Chris
In Thursdays Edition Of BP there was an Story that beside the offical Bla,Bla from the Generals that Foreigners bought Thai Assets like „Crazy „in Reality the Foreigners sold for Billions in 2015/2016 and 2017…so Most of this Story’s from Government that Foreigners so hot on Thai Stocks are obviously Wrong.
Given the Fact that most of Thai Shares beside the Index Heavyweights trades around Mult Year Lows i guess the Confidence of Retail Investors is very low.
Together with an Prominet Place on the Currency Manipulation Watchlist i Guess without at least 8% they cant sell to any Institutional Investors.
Pon
I don’t worry about the THB on the currency watchlist as the THB/USD has been the strongest performer in the past 3 years in SE Asia.
Correct on the equities market, as for the bond market it could be a different story but I do not have the actual figures on hand.
Ruud
But the 10 year bond has now a return of 2,44 %. Why the big difference ?
Pon
Who knows what it will actually be when they officially launch.
Chris
As said before the Generals loose an lot of Reputation lately.
If you get some EM Bonds now at or over 5% ( and you get it now) then they want an higher Return as you got the Equity Risk together with the Uncertainty in Thai Stock Market that is not very well regulated in the Eyes of Institutional Investors