Tbank capital boosts truck-leasing firm
After acquiring a major stake in Ratchthani Leasing from merged Siam City Bank, Thanachart Bank wants Ratchthani to be a leader in the truck-leasing business within three years.
Kovit Rongwattanasophon, managing director of Ratchthani Leasing, said the company would focus on leasing new trucks and used machinery vehicles and niche markets such as big motorcycles, while new passenger-car loans would transfer to the TBank portfolio.
Within three years outstanding loans should jump to Bt20 billion from Bt12 billion currently, Kovit said.
"Our share in the new-truck market within three years is expected to rise to 30 per cent from 20 per cent now," he said.
New-truck loans account for 50 per cent of the leasing firm’s total portfolio.
TBank will support Ratchthani’s corporate clients through 600 bank branches nationwide. The leasing firm has five branches of its own and will add one more in Chiang Rai to serve the growing trade between the Northern region and neighbouring countries including China.
The company projects new loans of Bt10 billion this year from Bt7 billion in 2011.
Loans for trucks and commercial vehicles have a growth rate of 30 per cent against 10 per cent for passenger cars.
Kovit said funding was not a problem for the company after TBank increased its stake in Ratchthani to 65 per cent.
The company today will propose a debenture issue worth Bt10 billion at a shareholders’ meeting.
Kovit said the first debenture lot, to be offered in early March, was expected to be worth between Bt2 billion and Bt5 billion with tenure of three to four years. The company will use the funds from the first lot for refinancing.
The company’s credit rating has improved to BBB+ from BBB-, which helps reduce its fund-raising costs.
Anuwat Luengtaweekul, executive vice president of Thanachart Bank, said the recent increase in Ratchthani Leasing’s capital by more than Bt500 million would help it expand its business for at least three years.
