On 16 May 2024, the Securities and Exchange Commission Office (“SEC Office”) issued rules to improve and modernise the criteria on issuance and offering of a debt securities and disclosure of information, which will take effect from 1 August 2024 onwards.
These rules covered a wide range of changes as highlighted below.
Firstly, if an issuer of debt securities has existing bonds or debentures defaulting on payment or an extension of their maturity, the issuer can only issue and offer a new subordinated bond, which must also specify that the issuer is in default or in a process of extension of the maturity of the bonds.
Secondly, the issuer, who issues and offers debt securities to the ultra high net worth or high net worth investors, must have financial statements in accordance with Thai financial reporting standards for publicly accountable entities from the year 2027 financial statements onwards.
Thirdly, the issuance and offering of high-risk debt securities, such as non-investment grade debt securities, must have a wording of “high risk bond” or “high risk debenture” in the name of such debt securities, which must also include an investment risk warning and asset allocation to diversify the risk of investment.