NAME: PTT’s Q-Bond issuance
LAW FIRM: Chandler MHM
JURISDICTION: Thailand
PRACTICE AREAS: Capital markets
INDUSTRY SECTORS: Banking and financial services, Technology and telecommunications
Thailand’s first Q-Bond issuance is our deal of the month for October.
Kasikornbank (KBank), Orbix Technology and Innovation (Orbix Tech), and PTT have announced the successful offering of PTT’s Q-Bond. The bond will have a one-year maturity and 2.38% interest rate, and its launch marks the first time that Quarix, the blockchain technology developed and maintained by Orbix Tech, was used for bond transactions in Thailand.
Quarix facilitates the back-end operation of bond payments through the Q-Bond project, which can collect data and calculate interest and principal payments on bonds due at maturity for investors. Another distinctive feature of the technology is its use for Q-money, an e-money product offered by KBank under the Bank of Thailand’s regulatory sandbox framework. Investors can settle bonds and repay interest or principal.
The use of Quarix blockchain is a milestone for financial and digital innovation in Thailand. The technology is used to help reduce costs and transaction procedures in bond transactions in a quick, accurate and transparent manner.
Chandler MHM advised issuer PTT. The team was led by partner Doungporn Prasertsomsuk and supported by associates Pradchayada Maneeratanapron and Praewa Silapunt.
KBank used its own in-house legal team as lead underwriter, registrar and investor.