Banpu Bonds, consider. A defensive investment.

Banpu are issuing new 11 Bill. Baht worth of bonds this week.  September 14 to 19.

From time to time I am asked where one can park some secure savings, without taking stock market risk.  I totally understand for many good reasons (and some not so) Thai stocks are just too uncertain and surely there is a trust issue, overall.  Everybody has different investor tolerance/attitude/disposition/temperament etc.. with their hard earned savings.  Yet, just sitting on cash or in a 0.5% paying bank savings accounts is a guaranteed long term looser, not least since inflation has picked up allot of late -in Thailand as well.  Gold my be one side option but it has not done well and pays 0% income, also there is the problem of storage.  Combining some quality bonds for stability and safety to balance volatile stocks has for long been a good investor plan.  Realize, bonds fluctuate, inversely so, with the level of prevalent interest rates.  Yet, much depends on the length/years to maturity.  Obviously the longer the maturity date, the more sensitive to interest rates.  

Bref, here below I describe one timely alternative idea coming up this week.  BANPU PUBLIC COMPANY LIMITED  new 4,7 and 10 year to maturity Bonds.

BANPU is a very big cap here, leading in the energy business....been around a long, long time and has a solid/stable bond rating! The company is very profitable and global.  Banpu are issuing new 11 Bill. Baht worth of bonds this week.  September 14 to 19.  4, 7 and 10 years maturity.  With interest to be paid set respecteviely at 3.26%,  3.8%  and 4.2% for the 10 year.  The 7 year one is the one I am subscribing to.  If you have a Thai broker account in place they will deposit the bonds right into that account, its also ok for foreigners to own as well.  Of course they can be sold before anytime on the bond mkt.,  but will decrease in value a bit, if interest rates move up, which I happen to think is a minor risk as one gets some 6-7 times higher current yield, vs. Bank saving accounts.  Presently "everybody is projecting higher interest rates to come", but this may not last long, if there is a major global recession next year?  This is why we can call it a defensive investment.  Hence a good offsetting match along with a stock portfolio. Banpu benefits from higher global energy prices and has 2 deep-in-the-money warrants outstanding, which assure a very strong capital base now as well as for years to come.

Interest is paid every 6 months deposited directly to one's Thai savings account. There is a 15% standard withholding Thai tax at the source on the interest paid. No forms are required for taxes or anything else, as the tax is withheld at the source.   I think Banpu is very safe as its a big global energy company doing very well & very profitable; anyway a bond of this type is very secure I believe.   Realize: bond interest and pay back on maturity is guaranteed, or the company goes into default. Vs. a dividend from a stock is never guaranteed.  Bangkok Bank is the best place to get these bonds, but you got to talk to somebody higher there -and be insistent.  Filling out an investor suitability form may be required, no big deal.   I realize a near 4% yearly bond interest is not anywhere near the current Thai inflation rate, which I think will drop however in time. Also there is an interest rate risk with these, but only if you sell out early.  But these are not with a very long term in maturity. If one is worried about that, go for the 4 year one, albeit at lower paid interest.  Also realize, if the world/Thailand goes into a economic recession next year?,  interest rates will very likely drop in time and so one could sit just right with this conservative investment, but not guaranteed.  Hence its a very defensive & prudent way to increase one's return during these uncertain times, vs. bank interest rate miserable returns which are not likley to move much higher.  

A good place to hide out present econ./global/energy trouble -with minimum risk.   Realize there are other choices as well, like SIRI (a successful property firm) issuing bonds paying a bit higher %,  but nothing compares to Banpu safety wise in my view.  Just to share.