GSB reviews portfolio INVESTING

INBrief

GSB reviews portfolio INVESTING :The Government Savings Bank is diversifying its investment portfolio to foreign assets in a bid to increase its investment returns.

The state-owned bank has invested a relatively modest three billion baht in overseas securities through local foreign investment funds, amounting to around 10% of its 30-billion-baht investment portfolio.

The GSB is expanding its portfolio to not only diversify its market risk, but also in hopes of improving returns to help offset the relatively high carrying costs of its deposits.

One official said offshore investments were yielding significantly higher returns than those in the local market. Short-term money market instruments, for instance, offer an annualised yield of 4.9% based on US Libor (London interbank offered rate), compared with 3.2% for baht securities of similar terms.

Even when adding the cost of currency swaps, offshore securities are paying higher returns than the local market, the official said. Rangoon flights resume

AVIATION :Burma's national airline will resume flights from Rangoon to Bangkok and Kuala Lumpur, after unrest in the military-ruled country forced suspension of services in October, the company said yesterday.

Myanmar Airways International (MAI) will fly the routes again from Jan 4. They had to be stopped when the company discovered that its MD-82 aircraft were not fully insured ''for war and allied perils''.

A public-relations official at the flag carrier said it would now be using Airbus A319s to fly to the Thai and Malaysian capitals.

MAI, a state-owned joint venture with Singaporean shareholders, will offer daily flights to Bangkok and five flights a week to Kuala Lumpur. AFP

Khanom rated AA-

ENERGY :Tris Rating has affirmed the rating of the senior secured debentures of Khanom Electricity Generating Co at AA- with a stable outlook.

The rating reflects the company's solid project fundamentals, its strategic position as a major base load generator in Thailand's southern region and its proven operational track record. 16-year bonds yield 5.4%

DEBT MARKET :The Bank of Thailand yesterday auctioned six billion baht worth of 16-year bonds for a weighted average accepted yield of 5.4606%. Accepted bid yields ranged from 5.434% to 5.47%, with the coupon rate 5.5% and the bid coverage ratio 2.9 times.