KBank set up investment banking arm
Kasikornbank has set up a new investment banking division to help access the equity-capital and debt-capital markets to cash in on the expected Bt800 billion in project investment in the next 18 months.
According to Krisada Lamsam, a senior executive vice president at KBank, 40 per cent of that total would be multifaceted investments through mergers and acquisitions in the European, US and Asean markets, and 40 per cent investment in local infrastructure such as roads, mass transit and power. The remaining 20 per cent will be business expansion in main provinces.
He said investment by medium-sized businesses with annual sales of Bt400 million to Bt5 billion was more active because they have to increase production capacity to do business overseas. These are largely supply-chain businesses.
Corporate banking customers looking to invest locally and abroad are demanding financial advisory services to help them raise funds through the equity and debt capital markets. Having integrated services at a financial house could serve the requirements of these businesses.
KBank has approached veteran financiers from KTB Advisory to supervise the investment banking division.
Panop Ansusinha, who heads the new division, said equity capital from Kasikorn Securities (KSEC) would be transferred to the bank, and KSEC would oversee brokerage services.
The division will offer expertise in equity and debt capital markets to offer all financial instruments to businesses and investors.
He said the investment banking division would bring in more fee income, expected this year to approach Bt1 billion, up 10 per cent from last year.
Panop said the division would work with the bank’s strategic partner Macquarie Group to help foreign stock exchanges raise capital in the Thai bourse or acquire funds for cross-border investment activities.
The bank estimates that more than 150 business projects with an investment value of Bt470 billion will seek new funds in the remaining months of this year, he said. The investment banking division is expected to be involved with half of these projects.
With 70 professional staff, international allies and a strong network in all types of business and industry, the investment banking division is confident of achieving growth of more than 35 per cent over the next three years.
