Thailand’s GH Bank to sell kingdom’s first residential mortgage-backed securities.

Thailand´s Government Housing Bank has reportedly hired five banks to help with sales of the kingdom´s first residential mortgage-backed securities, according to a report by the Bloomberg news service.

HSBC Holdings, Royal Bank of Scotland Group, Siam Commercial Bank, Bangkok Bank and TMB Bank are said to be arranging a baht denominated sale to local institutional investors according to the report, citing an unnamed person familiar with the situation.

“This would be a very important transaction if it were to materialize, because first transactions break the ground and show followers that it’s doable and that there are interested investors,” Moody’s Investors Service Senior Credit Officer Marie Lam said in a phone interview with Bloomberg from Hong Kong.

GH Bank said profits in the third quarter ending Septembet 30th were up 97 per cent to Bt3.3 billion (US$99.6 million) as a result of improved interest margins and a reduction in non-performing loans. A statement on the bank´s website said it intends to: “.. speed up housing loan extensions,” targeting Bt100 billion in new financing by the end of the year in support of the government’s economic stimulus plans.

According to data complied by Bloomberg companies in Thailand have not sold securities backed by home loans.