Chandler MHM Advises PTT on Thailand's First Q-Bond, a Groundbreaking Market Innovation Leveraging Blockchain Technology
Bangkok, Thailand – 21 October 2024 – Chandler MHM advised PTT, as the issuer, on Thailand's first Q-Bond, a groundbreaking market innovation leveraging blockchain technology. For the first time, "Quarix" is used to facilitate the back-end operation of bond payments, including data collection and calculation of the interest and principal payments that investors will receive on the maturity date through the Q-Bond operating system. Quarix is a blockchain technology developed by Orbix Technology and Innovation Company Limited, a company under KASIKORNBANK Financial Conglomerate.
The innovative application of Quarix extends beyond back-end operations, as the same technology underpins "Q-money", another distinctive feature of this transaction. Specifically, the payment of the subscription price, interest, and principal of the Q-Bonds will be made with "Q-money," an e-money product offered by KASIKORNBANK, through its "Q-money by KBank" application. This groundbreaking and innovative approach was developed and launched under the Bank of Thailand’s (BOT) regulatory sandbox framework.
This transaction, in its use of blockchain technology, is a game-changer in Thailand, as it demonstrates how technology can be used in bond transactions to reduce costs and transaction procedures while ensuring quick, complete, and transparent. This illustrates how innovative digital transformation can bring Thai capital markets up to speed with the latest global advancements in digital technology, including FinTech.
KASIKORNBANK acted as sole lead underwriter and registrar. Orbix Technology and Innovation Company Limited acted as the developer of Quarix, the technology facilitating the application system for the bond.
The team from Chandler MHM was led by Doungporn Prasertsomsuk, Partner, supported by associates Pradchayada Maneeratanapron and Praewa Silapunt.
Doungporn Prasertsomsuk, Partner, commented, "We are proud to have advised on this successful issuance and offering of PTT’s Q-Bond, which is a milestone for financial innovation and digital transformation in Thailand.”
Doungporn Prasertsomsuk is recognized as a leader in the Thai market for debt capital markets and is ranked top-tier by independent global legal publications.