Page 63 - Annual Report 2552

5. The Development of the Operational and the Investment Systems of the Public Debt Restructuring

and Bond Market Development Fund.
In the fiscal year of 2008, the PDMO initiated policy to increase the size of bonds issued with

the aim of developing the bond market. The new issuance plan contributed to establishing benchmark
yield curve as well as to enhance the liquidity in the secondary market. The PDMO has continued to

implement new strategy in the fiscal year of 2009, especially the issues of five-year and ten-year bonds
in the average amount of 80,000-120,000 million baht each term. In order to manage the refinancing

risk that may arise as a result of the significant increase in new bonds issued as well as the bunching
of debt in particular in the year 2012, the Public Debt Restructuring and Bond Market Development

nd
Fund was established Public Debt Management Act (No.2) B.E.2551 on 2 March 2008. The fund
allows for pre-funding of debt and fund will manage the proceeds from pre-funding in order to earn

return and lower the cost of borrowing. Moreover, PDMO further emphasize the importance of sustained
development of bond market by amending Act to allow for issuance of bonds purely for market development.

Therefore, the fund will be instrumental in supporting PDMO’s efforts by managing the proceeds from
benchmark bonds issuance. Proceeds acquired from the government borrowings under these two can

be summarized as follows:
(1) Pre-funding of the large amount public debt restructuring, not earlier than 12 months

before debt payment date. (Section 24/1)
(2) Domestic Bond Market Development by issuing bonds to create benchmark interest rates

in the market. (Section 25/1)
The PDMO has been developing the operational and the administrative systems of the

fund by enacting its regulations and disciplines. For the organization of the fund, it is divided into four
divisions. The Investment Division as a front office is responsible for execution of investment in accordance

to approved plans and strategy. The Policy and Planning Division is responsible for formulating policies
and risk management systems. The operations are then monitored by the Investment Compliance Division

to ensure limitation of risks. The General Administration Division (Supporting Unit) operates as a back
office and includes operations such as keeping accounts and custodian. The organization chart of the

fund is shown below.

62 รายงานประจำาปี 2552 ANNUAL REPORT 2009