The SMEs Bond project was a collaborative effort with (1) the Thai Bond Market Association, (2) TRIS Rating Co., Ltd., (3) Fitch Ratings (Thailand) Co., Ltd., (4) Bond Electronic Exchange (BEX), (5) Thai Listed Companies Association, (6) mai Listed Companies Association, (7) the Federation of Thai Industries, and (8) the Thai Chamber of Commerce. It was to promote another fund mobilization channel for small and medium-sized businesses with many privileges.
With over three million SMEs located nationwide, this type of business is key to economic growth. Our mission was to facilitate fund mobilization through the capital market for SMEs such as issuance of bond and bill. Like the “Pride of the Provinces” project, “SMEs Bond” project participants could join training courses on market knowledge and fundraising vehicles to get better equipped with bond issuance, and apply for credit rating agency’s rating at a lower cost. CRA reviews would stimulate performance improvement, increase SMEs reliability, enhance recognition from business partners and customers, and by extension, boost SMEs competitiveness and Thailand’s GDP growth.
Privileges for SMEs Bond project participants included lower rating fee under specific terms and conditions from TRIS Rating Co., Ltd. and Fitch Ratings (Thailand) Co., Ltd., discount on registration admission fee, annual fee and training fee from Thai Bond Market Association, project publicity by BEX, the Thai Listed Companies Association and mai Listed Companies Association, and nationwide information distribution by the Federation of Thai Industries and Thai Chamber of Commerce. The SEC waived application fee for product approval and reduced submission fee for initial registration statement.
Eligible applicants were companies limited or public companies limited established under Thai laws, excluding financial institutions or financial service operators. In addition, the companies’ asset as specified in the financial statement must be at a maximum of two billion baht as of the application date.