The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.


All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

Thai Eurobonds: Awash with default rumours

Corporate-finance teams are preparing for some late nights in Bangkok as they try to sort out the mess surrounding Thailand's corporate Eurobond issuers. In a movement akin to plate spinning, bankers are working on delicate negotiations over existing defaults while keeping an eye out for the next hapless issuer about to hit the floor.

Faced with interest payments which have doubled in baht terms as a result of the baht's depreciation, as well as a cashflow dry-up, a number of Thai issuers are facing the stark choice of restructuring or break-up. The archaic legal system means that for all but the most severe cases the restructuring option seems to be the favoured route among bondholders, spurred on by approaching premium put options and growing uncertainty over whether they will materialize.

Salomon Smith Barney fixed-income analyst Juanita Mayr's estimate is that 80% to 90% of Thai companies in the Euromarket need restructuring. Most of Thailand's corporate forays into the Euromarkets have been in the form of convertibles, but with a stock market which has halved in value in the past year and many companies trading below par, their conversion prices are laughable. Issuers are already struggling to meet interest payments and the death knell will be the put options, at least six of which come up for exercise in the second half of this year.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree