05/04/2021

KBank conducts private repo transactions using BOT THOR

          KASIKORNBANK (KBank) has conducted private repo transactions using BOT bonds referencing the Thai Overnight Repurchase Rate (THOR) as collaterals. The move highlights KBank’s position as the leader in the Thai financial market, through its earnest engagement in development of THOR, the new reference rate. KBank was recently presented the ‘Best THOR Engagement Award’ by the Bank of Thailand in recognition of its endeavors in supporting the launch of THOR-linked financial products in the financial market, in line with the Bank of Thailand’s guidelines. 

          Mr. Chongrak Rattanapian, KBank Senior Executive Vice President, said that following KBank’s success in continuously developing and promoting the issuance of a number of THOR-linked financial products throughout 2020, with the aim of adding diversity to related products, KBank has begun conducting private repo transactions using BOT THOR-linked floating rate bond as collaterals.  
          These transactions indicate a readiness to uphold the development of the money market and the enhancement of market liquidity to support the adoption of BOT THOR-linked floating rate bonds as collaterals in private repo transactions; such BOT bonds were first issued on March 25, 2021. This development aims to generate confidence among market participants and the general public, encouraging them to continually support the transition to the new reference rate. At the same time, the new bonds are in accordance with BOT’s THOR conduct guidelines for improving the stability of the financial market. The transition further emphasizes KBank’s leadership in development of the THOR-based interest market, as reflected in the ‘Best THOR Engagement Award’ granted to the Bank by the Bank of Thailand. 
​           The transactions details are as follows. On March 31, 2021, KBank undertook reverse repo transactions by accepting BOT THOR-linked floating rate bond as collateral for lending. On April 1, 2021, KBank also conducted private repo transactions using BOT floating-rate bonds indexed to THOR as collateral for borrowing. 
 


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