True Group secures nearly Bt49 bn credit facility from four banks
True Group yesterday secured Bt48.94 billion in credit from four local financial institutions to expand its wireless business, refinance debt and augment working capital to strengthen its operations.
According to its filing to the Stock Exchange of Thailand, True's subsidiaries BFKT (Thailand) Co and Real Future Co signed the credit-facilities agreement with Siam Commercial Bank, Krung Thai Bank, United Overseas Bank (Thai) and Export-Import Bank of Thailand.
The facilities consist of a term loan of up to 10 years and revolving credit.
According to True's release, SCB president Kannikar Chalitaporn said this financial support covered a full suite of financial services, starting with providing consultation for True's wireless business in terms of appropriate business and financial structuring to enable True Group to remain competitive on an optimal scale.
True's subsidiary Real Move has launched a third-generation cellular service with its partner CAT Telecom.
Real Future will spend Bt25 billion this and next year to procure 3G equipment for leasing to CAT for the wireless-broadband network. Some of the 3G capacity has been leased by Real Move to provide the service.
CAT, Real Move and Real Future signed deals in January to develop this 3G business. Later some state agencies, including the Office of the Auditor-General, stepped in to investigate whether the deals comply with laws and regulations. True stock price jumped 5.05 per cent to Bt4.16 yesterday.
