Bangkok, July 8, 2014 ? The SEC will issue regulations on offering of municipal bonds issued by public sector organizations. The regulations will be based on the similar principle as those governing private sector to help enhance the public sector operation along the line with international standard. 

SEC Secretary-General Vorapol Socatiyanurak revealed that the Capital Market Supervisory Board recently approved regulations on municipal bond offerings by public sector organizations under the Securities and Exchange Act B.E. 2535 (1992). The regulations, to be effective on January 1, 2015, will apply to domestic offerings of bonds denominated in baht and foreign currencies and offshore offerings in line with those governing offerings by limited company and public limited company.  Public sector organizations under the newly introduced framework are public organization, provincial administration organization, municipality, Bangkok Metropolitan Administration, Pattaya City and juristic person established by specific law.

Public sector organizations must comply with the criteria and disclose information in the same manner as private issuers where filing of an application for offering approval is required for public offerings. The issuers must prepare financial statements in accordance with financial reporting standards while having no record of failure to file with the SEC their financial statements or reports on financial conditions. In addition, their executives must possess the prescribed qualifications.

Besides public sector organizations must file registration statement with additional material information for investment decision making such as condition of non- guaranteed by the Ministry of Finance, source of fund for debt repayment and business nature for risk assessment. Like private issuers, report on offering result and periodic reports must be filed with the SEC after closing period of offerings. In case of private placement, more relaxed regulations will apply.

?Debt securities have gained popularity among private sector as tools to raise fund from investors directly whereas the issuers must comply with certain qualification, such as having financial statements prepared in conformity to accounting standards; executives with trustworthy characteristics; and proper disclosure of material information for investment decision making. The regulations approved by the Capital Market Supervisory Board will not only support public sector organizations to offer bonds for economic development but also strengthen their capability, in line with international standards. On investor side, in addition, more investment choices will better serve investor demand? Mr. Vorapol added.