This chapter provides an overview of key aspects of the Thai corporate bond market, covering recent trends, the composition and behaviour of major investor groups, listing requirements for bond issuance and the overall regulatory framework governing the market. It also examines the development of sustainable bonds in Thailand, as well as the tax treatment applicable to corporate bonds. In addition, it offers a comparative analysis with peer countries, highlighting differences in market size, structural characteristics and regulatory approaches.
OECD Capital Market Review of Thailand 2025
Abstract
Over the past 15 years, corporate bond markets have become a key financing source for non-financial corporations, especially when banks tightened credit after the 2008 financial crisis and during the COVID-19 downturn. Companies used bond markets to refinance debt, raise funds to overcome the downturn and/or build financial buffers. As bonds offer longer maturities than bank loans, they are also well-suited for long-term investments.
Thailand’s corporate bond market stands out as one of the most developed among ASEAN countries. The country recorded the highest outstanding amount among peer economies at the end of 2024, reaching USD 166 billion (Figure 4.1, Panel A). A distinguishing feature of Thailand’s market is the prominent role of non-financial companies, with outstanding amounts representing 22% of GDP compared to 9.3% of GDP for financial companies. Singapore follows closely, with outstanding amounts of USD 159 billion as of end-2024. In contrast to Thailand, Singapore’s market is heavily dominated by financial companies, representing 22% of GDP. Malaysia’s market mirrors Singapore’s, with financial companies’ outstanding amounts equivalent to 19% of GDP. In other ASEAN economies, corporate bond markets remain relatively underdeveloped.
Thailand’s corporate bond market has experienced a significant transformation over the past decade. Between 2015-2019 and 2020-2024, the average annual number of issuances increased from 112 to 139, alongside a modest decline in median issue size. This suggests that market expansion has been partially driven by increased participation by smaller companies. Malaysia and Indonesia exhibit more or less similar trends. By contrast, in Singapore the number of issuances declined, and, in the Philippines, the median issue size grew substantially.
Source: OECD Capital Market Series dataset, LSEG, see Annex for details.
Thailand’s corporate bond market has expanded substantially since the early 2000s (Figure 4.2). The average annual issuance increased from USD 5 billion in 2000-2011 to USD 26 billion in 2021-2024, a more than fivefold increase. Issuance rose sharply in the early 2010s, peaking at USD 38 billion in 2019. Although issuance temporarily declined in 2020, it rebounded quickly to pre-pandemic levels by 2021. In recent years, however, issuance has once again been on a downward trend, due to unfavourable market conditions, driven by interest rate hikes and weakened investor confidence in high-yield bonds following several issuer defaults (Bangkok Post, 2024[1]).
This growth has been driven by issuance from both non-financial and financial companies. Non-financial issuers have consistently dominated the market, accounting for roughly 60% to 80% of annual issuance. Between 2017 and 2019, the share of financial issuers increased temporarily. However, since the pandemic, non-financial companies have represented about 70% of total issuance.
Alongside growing issuance, the amount of bonds outstanding has also grown. In 2000, the total outstanding amount of corporate bonds was less than USD 40 billion, but it had more than quadrupled to USD 166 billion by 2024 (Panel B). The growth in outstanding corporate bonds has been particularly pronounced among non-financial corporations, increasing more than fivefold over the same period.
Source: OECD Capital Market Series dataset, LSEG, see Annex for details.
In the ASEAN region, the industrials sector has been the dominant player in the corporate bond market, accounting for a larger share than the global average, though still smaller than in Asia overall (Figure 4.3). The utilities and energy sectors follow closely, together accounting for 54% of total outstanding corporate bonds in the region between 2000 and 2024. This sectoral composition is mirrored in Thailand, where the industrials sector is the most prominent sector. Industrials also lead in Malaysia and Singapore. In Thailand, the basic materials and consumer non-cyclical sectors also constitute a substantial portion of the corporate bond landscape.
Although the maturity structure of Thailand’s corporate bond market gradually lengthened in the early 2000s, it has remained around five years in the last decade (Figure 4.4, Panel A). In the early 2000s, a stable or declining interest rate environment encouraged companies to lock in lower borrowing costs by issuing longer-term debt, contributing to a lengthening of maturities. Similarly, around 2012, in the wake of the global financial crisis, global interest rates reached historic lows. This low-yield environment prompted a search for yield, leading investors to accept longer-dated bonds in pursuit of higher returns.
Nevertheless, Thailand’s average corporate bond maturity remains relatively short compared to its peers (Panel B). Almost 60% of corporate bond issuances have maturities of less than five years, reflecting a persistent preference for shorter tenors, possibly driven by issuances from smaller companies. In contrast, longer-dated bonds - those with maturities over five years - make up most issuances in Indonesia, Malaysia and Singapore. In Indonesia in particular, more than 30% of corporate bonds have maturities exceeding 10 years. This may be due to countries having a more developed institutional investor base with higher tolerance for duration risk, as well as stronger credit profiles among issuers.
Source: OECD Capital Market Series dataset, LSEG, see Annex for details.
Source: OECD Capital Market Series dataset, LSEG, see Annex for details.
The platforms for issuing and trading corporate bonds differ across countries. In Thailand, a marketplace for trading corporate bonds once existed on the stock exchange, but due to extremely low usage it was closed in 2021. As a result, most corporate bond transactions now take place over-the-counter (OTC).
Although both Thailand and Singapore primarily issue corporate bonds on their domestic stock exchanges, they differ in their currency denomination (Figure 4.5). In Thailand, most bonds are denominated in Thai baht. This strong preference stems from the 1997 Asian Financial Crisis, when many Thai companies had taken on unhedged US dollar debt under the assumption that the baht would remain stable. When the currency sharply depreciated, these companies faced surging debt burdens, triggering widespread financial distress. In the aftermath, the Thai government sought to encourage a shift towards local currency financing. By contrast, in Singapore, bonds are commonly denominated in US dollar, though some are issued in other currencies.
Source: OECD Capital Market Series dataset, LSEG, see Annex for details.
Thailand’s corporate bond market has long been heavily reliant on domestic investors, with over 99% of outstanding corporate bonds held by local investors - both institutional and retail - in 2024. This high dependence on domestic capital distinguishes Thailand’s bond market from those of regional peers. Unusually by global standards, retail investors - including many high-net-worth investors (HNWIs) - constituted the largest investor group in 2024, holding about 40% of total outstanding corporate bonds. Institutional investors held nearly half of the total. Within this category, insurance companies hold 16% of outstanding amounts, followed by long-term funds (13%), such as public and private pension funds and the social security fund. The remaining 20% was distributed among mutual funds, cooperatives, banks and corporate investors.
Note: Money Market Funds (MMFs) are investment funds that typically invest in short-term, low-risk debt instruments, seeking higher-yielding corporate bonds.
Source: BMA (2024[2]), Annual report, https://www.thaibma.or.th/EN/About/AnnualReport.aspx.
Recognising this unique investor composition, the SEC introduced a formal investor classification in 2019, distinguishing HNWI from general retail investors. This regulatory framework is designed to limit access to high-risk bond issuances to only qualified, affluent investors to protect retail investors and preserve market confidence amid their rising participation in the 2010s. The criteria were further refined in 2022, with eligibility for investment in bonds now based on factors such as net assets, annual income and investment amounts, and investor knowledge and experience (Table 4.1).
Note: Individual may include its spouse. Investment should only include direct investments in securities or futures contracts.
Source: SEC Thailand (2022[3]), SEC News - SEC public hearing on a proposed amendment to the definition of high net worth investor of infrastructure funds and infrastructure trusts, https://www.sec.or.th/EN/Pages/News_Detail.aspx?SECID=9404.
Corporate bond issuance and trading in Thailand are primarily regulated by the SEC, which oversees both primary offerings and secondary market activities. All corporate bond offerings must either receive SEC approval or qualify for an exemption under the Securities and Exchange Act. Trading is primarily conducted OTC. Licensed dealers must report all transactions to the Thai Bond Market Association (ThaiBMA) within 30 minutes of execution. ThaiBMA publishes trading information on both an intraday and end-of-day basis, and these prices serve as key market benchmarks for mark-to-market valuation. Operating under the oversight of the SEC, the ThaiBMA acts as a self-regulatory organisation responsible for market surveillance and enforcement of trading conventions. It also serves as the central repository of bond-related data. In Thailand, nearly all bond issuances must be registered with ThaiBMA, with limited exceptions such as small private placements or short-term instruments (ThaiBMA, 2025[4]).
Corporate bonds are issued through two main channels: public offerings and private placements. Public offerings are directed at a broad, unspecified group of investors, whereas private placements are limited to selected investors. Private placements are further categorised into three types based on the investor profile: up to 10 investors (PP-10), institutional investors (PP-II) and high-net-worth investors (PP-HNWI). Given their broader reach, public offerings are generally subject to more stringent regulatory requirements compared to private placements (detailed requirements and associated fees can be found in the Annex).
4.3.1. General requirements and admission for domestic issuers
A corporate issuer making a public offering must prepare a prospectus and registration statement in accordance with SEC regulations. The prospectus must contain disclosure of all material information such as a business description, financial statements and risk factors, as required by Sections 69-70 of the Securities and Exchange Act. The prospectus is reviewed by the SEC before approval and then becomes a public document for investors to review. However, a prospectus is not required for private placements involving fewer than 10 investors (PP-10). For other types of private placements, such as those offered to institutional investors (PP-II) or high-net-worth investors (PP-HNWI), a prospectus is still required (National Assembly of Thailand, 1992[5]; SEC Thailand, 2025[6]).
In addition, a factsheet is required for public offerings and certain types of private placements. The factsheet, incorporated into the bond registration statement and prospectus, provides a concise summary of key information including company-specific risks and investment risk warnings. Typical items covered in the factsheet include: the issuer’s name and business description, the bond’s official name, issuance type (public offering or private placement), currency, issuance amount, face value per bond, interest rate and payment terms, maturity date and redemption method, presence of collateral or guarantees, bondholder representative (if any), use of proceeds, credit rating, investment risk summary and key financial highlights of the issuer. The format is prescribed by the SEC, and a sample can be found in documents published by ThaiBMA.
Domestic issuers are required to include financial statements as part of their disclosure. These must be prepared in accordance with Thai Financial Reporting Standards (TFRS), which are closely aligned with International Financial Reporting Standards (IFRS), and must be audited by an auditor approved by the SEC. For public offerings, issuers typically must submit three years of audited financial statements. Issuers of publicly offered bonds must file annual and quarterly financial reports, as well as material event disclosures, with the SEC.
Thailand mandates credit ratings for certain types of bond offerings. Public offerings of corporate bonds must obtain a credit rating from an SEC-approved credit rating agency. As of 2024, this includes two domestic agencies – TRIS Rating and Fitch Ratings (Thailand) – and five foreign agencies. Public offerings are required to have investment grade credit ratings. For private placements to institutional or high-net-worth investors (HNWI), a credit rating is not always legally required. However, many issuers still obtain a rating for PP-II or PP-HNWI offerings to improve investor confidence (ADB, 2016[7]).
To ensure investor protection, the SEC requires the appointment of a bondholders’ representative (BHR) for secured bonds, public offerings and for those offered to HNWIs. The BHR is a trustee or agent that represents bondholders’ interests such as monitoring covenants and acting on default.
The Medium-Term Note (MTN) programme, introduced by the SEC in 2018, streamlines the serial issuance of debt securities for both public offerings and private placements targeting institutional and high-net-worth investors. Under this framework, issuers can raise capital over a two-year period through multiple tranches without undergoing the full approval process each time. The programme starts with the submission of Form 69-Base as a Prospectus, which provides comprehensive information on the programme’s structure, such as the types of debt securities, total issuance size, duration, standard terms and issuer details (SEC Thailand, 2021[8]). Once approved by the SEC, issuers can proceed with additional offerings through a simplified process (Lexology, 2021[9]).
Issuers must keep disclosures current throughout the programme. If there is a material change in the issuer’s business or financial condition, an updated registration using Form 69-Supplement is required. For each tranche, issuers must file Form 69-Pricing detailing terms such as interest rate, maturity and issuance amount along with a drawdown prospectus that complements the base prospectus by covering tranche-specific details. This layered disclosure approach ensures investors have access to both overall programme information and the key commercial terms of each issuance. A factsheet highlighting essential information such as rates and risks is also provided for each offering.
4.3.2. General requirements and admission for foreign issuers
Foreign companies can issue Thai baht-denominated bonds (“baht bonds”) in Thailand under a strengthened regulatory framework. Since 1 January 2024, the SEC has had sole authority to approve such offerings, removing the need for Ministry of Finance or Public Debt Management Office approval (Baker McKenzie, 2024[10]). Foreign issuers can now apply directly to the SEC, following a process similar to domestic issuers. Under the updated 2024 framework, the SEC enforces stricter criteria, including a mandatory international investment-grade credit rating, except for small private placements (PP-10) (SEC Thailand, 2024[11]).
Disclosure requirements for foreign issuers generally mirror those for domestic ones. Issuers must provide an offering document equivalent to a Thai prospectus and financial statements under international standards (e.g. IFRS or US GAAP). A Thai summary is usually required for public offerings, while English documents may suffice for institutional or HNW investors. Foreign issuers must appoint a local representative and register all bonds with the ThaiBMA, ensuring transparency. A bondholders’ representative is mandatory, and the SEC reviews the issuer’s legal background to ensure no record of fraud. Overall, foreign issuers face higher entry standards, including credit rating, trustee and registration requirements.
4.3.3. Corporate bond issuance via blockchain technology
Thailand has taken notable steps in applying blockchain technology to corporate bond issuance. A landmark case is the 2024 launch of the “Q-Bond” by PTT, the country’s largest state-owned energy company. Unlike tokenised public offerings, the Q-Bond used a permissioned blockchain system (Quarix) to manage bond issuance, interest payments and principal redemptions (Mori Hamada & Matsumoto, 2024[12]). Coupled with a digital payments integration, investors subscribed, received coupon payments and redeemed bonds through this closed-loop system, eliminating reliance on traditional clearinghouses. The entire issuance was conducted under the Bank of Thailand’s regulatory sandbox, ensuring oversight while enabling innovation.
Following PTT’s pilot, Thai corporations are increasingly exploring blockchain for debt issuance. While most projects target internal efficiencies, regulation is advancing. By early 2025, the SEC had approved four investment token projects, with more underway, reflecting rising institutional interest in blockchain-based fundraising (Digital Watch, 2025[13]).
Thailand’s sustainable bond market has grown rapidly from its emergence in the late 2010s to becoming a significant segment of the Thai capital market today. Thai authorities, particularly the SEC, have played a proactive role in establishing a supportive environment for sustainable bonds. In December 2018, the SEC introduced green bond issuance guidelines and expanded them in May 2019 to include social and sustainability bonds. These guidelines align with international standards such as the ICMA and ASEAN frameworks. This initiative significantly contributed to the growth of Thailand’s sustainable bond market, with many early issuances accompanied by second-party opinions.
Beyond guidelines, the SEC has actively pursued international integration to enhance market visibility. In 2020, the SEC engaged with the Luxembourg Stock Exchange to allow Thai sustainable bonds to be displayed on the Luxembourg Green Exchange (LGX), a prominent global platform for these securities. The SEC conducted regulatory alignment and offered support to Thai issuers interested in dual listing, culminating in the Thai government’s sustainability bonds being showcased on LGX.
Other aspects of the regulatory ecosystem include the introduction of the Thailand Taxonomy in 2023. Following the initiatives by the Bank of Thailand and the SEC, the taxonomy currently targets climate change mitigation in the energy and transport sectors, using a “traffic-light” classification (green, amber and red) to identify economic activities based on environmental sustainability. The framework reduces greenwashing by guiding banks and issuers in identifying eligible green projects, and its planned expansion to other sectors will further boost the credibility and volume of green bonds (PDMO, 2023[14]).
Thai authorities have introduced measures to support the development of this market. From 2019 to 2025, the SEC waived application and filing fees for green, social and sustainability bond issuances. Sustainability-linked bonds (SLB) were also included in 2021. In 2025, the waivers were extended for an additional three years. Under the extension, the fee waiver applies to all sustainable bonds, while the filing fee waiver applies specifically to SLB and green, social and sustainability bond issuers that adopt the Thailand Taxonomy or ASEAN Taxonomy, with external verification. In parallel, the ThaiBMA waived registration fees for sustainable bonds registered by June 2022 and exempted annual registration fees for bonds with maturities over seven years. Additionally, the SEC and ThaiBMA launched an ESG bond information platform in 2020, providing centralised access to issuance details, issuer profiles, external reviews and applicable standards for sustainable bonds issued in Thailand.
Thailand’s sustainable bond market has been expanding in recent years. Since the country’s first certified climate bond was issued by B. Grimm Power Public Company Limited in 2018, total issuance has grown reaching USD 1.9 billion in 2021 (Figure 4.7, Panel A). Much of this growth has been driven by non-financial companies. Although issuance dropped in 2023, the market rebounded supported by increased activity from financial institutions, with USD 1.6 billion issued in 2024. The outstanding volume of sustainable bonds has also grown. Given that the market only began in 2018, few bonds have reached maturity so far. As a result, the outstanding amount stood at USD 6.5 billion at the end of 2024 (Panel B).
Source: OECD Corporate Sustainability dataset; LSEG, see Annex for details.
Since the first issuance of Thailand’s sustainable bond in 2018, total issuance through 2024 places the country in the mid-range among its peers (Figure 4.8, Panel A). Singapore leads by a wide margin, with issuance exceeding USD 20 billion, followed by Malaysia and the Philippines. In contrast, sustainable bond activity in Viet Nam remains minimal.
Sustainable bonds fall into two main categories. The first category is use-of-proceeds bonds, where funds are allocated - fully or partially - to specific green, social or sustainable projects. These are further divided into: i) green bonds, which finance environmental initiatives like renewable energy or climate adaptation, ii) social bonds, which support projects with social benefits, such as affordable housing or access to healthcare, iii) sustainability bonds, which combine both green and social objectives. The second category is sustainability-linked bonds (SLBs). Unlike use-of-proceeds bonds, SLBs are not tied to specific projects and are instead performance-based, allowing proceeds to be used for general purposes, while linking the bond’s terms to the issuer’s achievement of predefined sustainability performance targets, such as emissions reductions or diversity improvements.
Source: OECD Corporate Sustainability dataset; LSEG, see Annex for details.
In Thailand, green bonds dominate sustainable finance, accounting for about half of total sustainable bond issuance, while sustainability-linked bonds have remained smaller since the first issue in 2021 (Figure 4.9, Panel B). Indonesia and Singapore show similar patterns, whereas Malaysia and the Philippines show greater use of sustainability bonds. Despite issuance volumes comparable to the Philippines, Thailand’s sustainable bonds represent only about 4% of total corporate bond issuance, versus over 12% in Malaysia, the Philippines, and Singapore (Figure 4.9).
In Thailand, sustainable bond issuers follow the same rules as ordinary bonds, with added disclosure requirements under the SEC’s 2024 amendment. Since 2018, the SEC has issued guidelines based on international standards (ICMA, ASEAN Capital Markets Forum), requiring detailed reporting on use of proceeds, project selection, fund management and annual updates. The SEC also promotes independent reviews, and local firms such as TRIS Rating now offer affordable green bond verification services (Chambers and Partners, 2022[15]).
Note: The bubble size represents the issuance amount of corporate sustainable bonds between 2018 and 2024.
Source: OECD Corporate Sustainability dataset; LSEG, see Annex for details.
References
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