Investment-grade firms avoid BSFNone of the companies with investment-grade credit ratings sought financial assistance from the central bank's Corporate Bond Stabilisation Fund (BSF), reflecting they are still able to access funding sources, says the head of the Public Debt Management Office. Lack of participation in the BSF bodes well, as it indicates that funding sources are still accessible, said Patricia Mongkhonvanit, who is also a member of the BSF committee. One company applied for BSF funding in early April, but eventually sought another source of funding, she said. The BSF is a 400-billion-baht bridge financing facility to help investment-grade corporate bond issuers that are unable to fully roll over bonds maturing during 2020-21. To make the BSF the last resort for corporate bond issuers, the fund charges higher rate than banks and its conditions are quite tough.

Source: Bangkok Post July 06, 2020 23:48 UTC