Group Lease aims to raise Bt3.4 bn for expansion

“Across Southeast Asia, there are a lot of small finance companies that have reached their lending limit and cannot expand further,” Mitsuji Konoshita, chairman and chief executive of GL, said yesterday. “But we are in a strong position to raise funds to support them, so we are expanding our range of businesses to become a financial service provider.”

GL will offer more than 341.5 million free warrants to shareholders at the ratio of 1 warrant to 3 shares. One warrant will be convertible into one share at the exercise price of Bt10. An extraordinary shareholders meeting has been called for November 8 to endorse the rights offering. 

The company also plans to broaden its motorcycle instalment-loan business in Laos as part of its drive to double its loan portfolio to Bt10 billion by 2015. 

The company is reportedly negotiating to take over a sizeable microfinance business in Cambodia.

The company’s board also approved the issuance of up to Bt2 billion worth of debentures, with proceeds to be used for working capital and expansion. 

GL’s first-half net profit revved up 25.6 per cent year on year to Bt181.5 million on strong motorcycle sales, despite the slowdown of the economy. 

Monthly motorcycle leasing has jumped 30 per cent to more than 9,000 units and the company is on track to reach the target of 12,000 units by year-end.

GL’s Cambodian operations have been boosted by its recent deal with Siam Kubota Corp to take over financing for the popular brand of farm equipment via GL Finance (GLF), GL’s wholly owned subsidiary in Cambodia.

GLF has now opted for a more cautious approach to motorcycle leasing in Cambodia. It had aimed for 2,000 units in the third quarter but now that goal is expected to be met in the fourth quarter. 

The company targets an average 4,000 units a month next year after setting up points of sale at Honda motorbike dealerships across Cambodia.