The Stock Exchange of Thailand (SET) has joined forces with the Association of Thai Securities Companies and the Thai Bankers' Association to launch a digital infrastructure for fully electronic end-to-end bond offerings.
The end-to-end system covers issuance, filing, subscription, payment and delivery.
The infrastructure aims to increase the efficiency and transparency of the Thai capital market's services, reduce costs, and increase access for both fundraisers and investors.
The Digital Infrastructure (DIF) Web Portal is expected to enhance regulatory efficiency and digitally transform the country's capital market to keep pace with rapidly changing global trends, executives said yesterday.
"This portal marks an important turning point in the capital market, connecting the work of market participants to transform it into a fully-digitised process to create a competitive edge, boost efficiency and push the capital market towards sustainable growth," said Thawatchai Pittayasophon, acting secretary-general of the Securities and Exchange Commission.
The regulator initiated the digital infrastructure for the capital market towards the end of 2019 with the support of the Capital Market Development Fund (CMDF).
The project is included in the fourth Thai capital market development plan (2022-27).
SET president Pakorn Peetathawatchai said the DIF Web Portal provides end-to-end bond offerings in the primary market electronically. The process includes the settlement and delivery of debt instruments in scripless form.
The system was financed by the CMDF and is owned by CMDF Digital Infrastructure Co, while the Thai Bond Market Association (ThaiBMA) is the system operator in terms of day-to-day operations.
Somjin Sornpaisarn, president of the ThaiBMA, said the DIF Web Portal plays a dual role as a debt instrument registrar, which is one of the association's core missions, and the project's business operator.
In May, the first four companies to issue bonds via the system were PTT Plc, PTT Exploration and Production Plc, Toyota Leasing (Thailand) Co and Kasikornbank, with total fundraising tallying more than 6.6 billion baht.
DIF Web Portal utilises advanced technology to connect with the digital bond offering transaction system used by all sectors involved in an end-to-end manner, with digital standard messages.
This infrastructure in the Thai capital market helps to increase the efficiency of the investment ecosystem and should support the development of new investment products in the future, said Mr Somjin.
