Today we will share stories that are currently of interest in the industry. Finance and investors That is, debentures by debentures mean exactly what they say. Those who issue debentures, such as public companies listed on the stock exchange, want to raise funds to do something by offering debentures so that the general public has the right to legally lend money, and this is called debt instruments, and of course debt instruments are There is a return policy for those who buy ity of interest in the industry. Finance and investors That is, debentures by debentures mean exactly what they say. Those who issue debentures, such as public companies listed on the stock exchange, want to raise funds to do something by offering debentures so that the general public has the right to legally lend money, and this is called debt instruments, and of course debt instruments are There is a return policy for those who buy it. We can earn interest based on the number of investment units agreed upon with the company offering this bond to the public. In Thailand, the issuance of debentures is set at around 1,000 baht per unit, and the initial investment is usually set at 100,000 baht with a clear interest contract. and the principal, which will be returned within the time frame specified by the company.
Zoom in to see it more clearly. For example, the AF brother company offered to sell 1,000,000 debentures with a project to use such investment to expand the AI system business with a loan period of 5 years and a return of 5% per year. has invested in the debentures We will receive a refund of the amount purchased plus interest for the past 5 years.
The debentures are different from ordinary stocks, which is when we buy them. Our position will not be as shareholders. But we will become creditors. and have no right to vote in the meeting of shareholders; get a return as interest, not a dividend; and have the tenure to hold the debentures.
According to the information given by the Siam Commercial Bank, there are five main types of debentures. They are as follows:
Subordinated debentures are issued in case the issuer goes bankrupt. They are also called subordinated bonds or junior bonds.This type of debenture holder will have the right to claim assets from the issuer. ranked inferior to other ordinary creditors It will, however, be greater than the claims of preferred and ordinary shareholders, who have the final say.
Senior Bond: This type of bond holder has the right to claim assets from the issuer. equivalent to other ordinary creditors and higher than subordinated debenture holders’ preferred shareholders and ordinary shareholders, respectively.
A convertible bond is a debt instrument that investors can exchange for ordinary shares of the issuer at a specified price. The issuing company will issue ordinary shares in an amount equal to the bonds held. The investor’s status is therefore changed from creditor to owner. and with ownership status Therefore, investors have the opportunity to profit from the difference between the purchase price and the selling price (capital gain) if the stock price rises. But if the stock price in the market is still lower than the price specified in the conversion, investors can choose not to convert into shares. and continue to be held as a debt instrument to receive interest on each installment as specified (which will be lower than normal debentures of the same issuer) and receive the principal back at the par price on the expiration date.
A secured bond is a type of debenture in which the issuer uses assets as collateral for the issuance of debentures and the holder has complete control over the collateral assets over other ordinary creditors.In practice, a person is usually appointed to act as a Bond Holder Representative to verify the status of the pledged assets.
Unsecured bonds are debentures that do not contain any assets. positioned as exit collateralIn case the issuer goes bankrupt, the assets must be divided with other creditors according to their rights and proportions.
Conclusion: Before the end of this article, all forms of investment carry risks. Please carefully consider and study what you are about to invest in and accept the risks that you can bear. It should not be invested in emotions and contain little news at all.
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