Bond Switching
Bond Switching
is a transaction of exchanging a particular series of existing bonds held by investors (source bonds) with a particular series of selected bonds (destination bonds). Both source and destination bonds have been determined by bond issuers. This transaction can be used as a tool for refinancing and increasing liquidity in the debt securities market.
Benefits to investors
1. A privilege is given to investors to exchange existing bonds with selected bonds having higher liquidity.
2. For managing investment portfolio to minimize risk / maximize return.
How to do transactions
1. Via the BOT's Bswitching system: All participants must be members of the Bswitching. (Started operation via Bswitching system since November 28, 2017)
2. Via Joint Lead Manager (JLM): Investors must submit an exchange request to JLM appointed by the issuer.
Applying for Bswitching service
Applicants must be e-Bidding members (competitive bidder) and have to submit an application at least 15 working days prior to using the service as follows:
1. Submit an application with documents required by the BOT:
2. As the applicant receives an acceptance email from the BOT, the applicant has to appoint rights manager in the
system and submits a Letter to Appoint Rights Manager to the BOT.
3. Assign and approve user rights.
