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S&P sees faster development in 10 unrated Asian sovereigns
Political changes in many unrated Asian nations and increasing globalisation have set in motion economic liberalisation and faster development, Standard & Poor’s Ratings Services said yesterday in a report titled “A Foray into Asia-Pacific Frontier Markets – A Credit Quality Survey of Unrated Sovereigns”.
“Such changes generally entail increasing interaction with greenfield foreign investors, followed by greater integration with international capital markets,” said S&P credit analyst Agost Benard.
The report offers an assessment of credit quality based on publicly available information, and the credit opinions expressed may therefore differ from an actual rating, as they do not incorporate information obtained in the course of a usual rating process, which includes direct interaction with the sovereign, said the analyst.
“The report will be a useful guide for interested parties by providing a strong indication of credit strengths and weaknesses,” Benard said.
The report analyses 10 unrated sovereigns: Bhutan, Brunei, Laos, Micronesia, Myanmar, Nepal, Palau, Solomon Islands, Timor-Leste and Vanuatu.
The appraisals outline the supportive factors and constraints for these countries, in line with S&P’s sovereign-ratings methodology.
Chaoprayamahanakorn seeks bourse listing
Property firm Chaoprayamahanakorn has submitted a filing to the Securities and Exchange Commission to issue 250 million shares in an initial public offering.
The funds from the IPO will be used for repaying debt, developing new property projects and reserving for working capital, the company told the commission.
Asia Plus is financial adviser to the developer.
For the first six months of the year, Chaoprayamahanakorn reported revenue of Bt706.79 million and net profit of Bt85.61 million.
Sansiri’s Bt1-billion debenture sold out
Property firm Sansiri has sold out its Bt1-billion five-and-a-half-year debenture, which offers a fixed interest rate of 5.2 per cent.
The funds raised will be used for the listed developer’s business investment and cash flow.
Bangkok Metro plans capital increase
Bangkok Metro (BMCL), the subway operator, is issuing 8.5 billion new shares to increase its capital from Bt11.95 billion.
In a filing yesterday to the Stock Exchange of Thailand, the company said that while 2 billion shares were reserved for the rights offering, 4.2 billion shares would be offered to its major shareholder, Ch Karnchang, in a private placement.
The remaining 2.35 billion shares are reserved for four creditor banks: Krung Thai Bank, TMB Bank, Bank of Ayudhya and Thanachart Bank.
The company did not reveal the reason behind the capital increase. Due to years of losses, BMCL’s shareholder equity as of June was only Bt462.9 million, compared to Bt895 million last year and Bt1.88 billion in 2011.
Last month, it signed the fourth contract for the Purple Line (Bang Yai-Bang Sue), worth Bt83 billion.
Vegetable prices frozen during festival
Deputy Commerce Minister Yanyong Phuangrach said yesterday that modern-trade retailers and the operators of eight fresh markets had agreed to maintain vegetable prices during the Je Festival.
He insisted that surveys showed that the costs of vegetables and seasoning products during the October 5-13 vegetarian festival were mostly lower than during the same period last year.
KBank relief measures for flood-hit clients
Kasikornbank (KBank) has introduced relief measures for flood-hit customers in 27 provinces, reducing monthly instalments and interest rates, and postponing the principal on repayments, in order to help increase clients’ liquidity.
Those who are severely impacted by the flooding can apply for new loans to help restore their businesses.
Interested customers can apply to participate in the programme by October 31.
KBank president Teeranun Srihong said that for K-Home Loan customers, the bank would reduce monthly instalment payments by up to 40 per cent of the usual repayment amount, or customers could opt to repay just the interest on loans for six months.
Additionally, KBank offers a new credit limit for home renovations of up to 100 per cent of the current home-loan limit that had been paid, with up to 15 years for credit terms.
Govt urged to use Thai textiles in mega-project
The government should promote the use of Thai textiles in the planned Bt2-trillion transportation infrastructure development project, which would benefit locally made textile products, Somsak Srisuponvanit, chairman of the National Federation of Thai Textile Industries, said yesterday.
Textiles can be used as parts and accessories in vehicles, electric trains and even planes, he said.
The country’s exports of textiles in the first eight months of the year expanded 10.49 per cent year on year to US$3.149 billion (Bt98.5 billion), due mainly to the weaker baht.
Garment exports in the same period dropped 4.15 per cent to $1.957 billion.
