Corporate financing needs 'steady' next year: Kbank
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Kasikornbank expects total demand for financing from corporations next year to be steady at Bt1.2 trillion, because some of the funds required will be for projects carried over from this year.
Demand this year is expected to come in at between Bt1.2 trillion and Bt1.5 trillion.
KBank executive vice president Vasin Vanichvoranun said yesterday that the bank expected corporate firms with annual sales of more than Bt400 million to continue to expand their businesses.
Of the total Bt1.2 trillion in funds firms are expected to require next year, Bt400 billion will be for business expansion, Bt250 billion for new investments, Bt400 for international business expansion and Bt150 billion for business rehabilitation.
KBank expects to win deals amounting to Bt350 billion next year, similar to this year.
He said the bank had more than 150 deals in the pipeline for next year, consisting of nine merger-and-acquisition deals, 75 deals for long-term loans, 21 for bonds, five in initial public offerings, five for infrastructure funds and 43 deals overseas.
Seven key industries are driving the capital requirements, led by utilities and petrochemical and agricultural firms, he said.
The bank still focuses its business on power, petrochemicals, industrial agriculture, food and beverages.
The strategy for 2012 is unchanged from this year, he said, adding that the bank was continuing to work towards value enhancement, green business and inbound/outbound transactions.
KBank aims to increase its market share to 25 per cent next year from 22 per cent currently and outstanding loans are expected to grow by 9 per cent from this year’s level of Bt352 billion.
Vasin said that despite the volatility of the global economy and the local flood crisis, 2012 showed positive signs of supporting development of both the international and domestic markets.
The domestic market will be driven by populist government policies and rising agricultural prices, which will boost consumption.
Local investment will be in line with the higher prices of agricultural products, while the country will continue to invest in infrastructure projects and the private sector will focus on automation, productivity improvement and business expansion.
