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TRIS affirms 'A+' ratings of Thanachart Capital, senior debentures
TRIS Rating has affirmed the company rating of Thanachart Capital and the ratings of TCAP’s existing senior debentures at “A+”. At the same time, TRIS Rating has assigned the rating of “A+” to TCAP’s proposed issue of up to Bt1.3 billion in senior debentures. The outlook remains “stable”.
The ratings are based on TCAP’s position as the investment holding company of the Thanachart Group, management control of Thanachart Bank, the core bank subsidiary, through a 50.96-per-cent ownership stake, and the stable stream of dividends TCAP receives from TBank.
However, the ratings are partially offset by TCAP’s weak asset quality, relatively low but improved reserves for loan losses, and the intense competition in the banking industry.
The “stable” outlook reflects the expectation that TBank, as the major source of revenue for TCAP, will be able to leverage the synergies among TBank and the Bank of Nova Scotia to strengthen its competitive positions in its core lines of business.
The strong financial support and business know-how received from major shareholders TCAP and ScotiaBank will enhance TBank’s overall business and financial performance in the future, TRIS believes.
Krungsri unit offers fixed-income fund
Krungsri Asset Management is offering a six-month-term fixed-income fund paying 3 per cent per annum to attract investors who are looking for low-risk instrument with return higher than deposit products.
The fund, KFFIX6M77, is available from today through November 4, said Chatrapee Tantixalerm, chief executive officer of Krungsri Asset Management.
The fund will invest in domestic and foreign fixed-income notes. Twenty per cent of the fund will go to notes from Bank of China’s Macau branch, and 20 per cent to fixed-income notes issued by Industrial and Commercial Bank of China Asia Ltd. Fifteen per cent of the fund will be allocated to the Euro Commercial Paper (ECP) bonds guaranteed by Gazprombank, and about 15 per cent will be invested in the Euro Medium Term Notes (EMTN) issued by Banco Santander Brasil.
Domestically, the company will allocate 10 per cent of the fund to short-term bonds of Thanachart Bank and 20 per cent in bills of exchange of Ayudhya Capital Auto Lease.
The minimum required investment is Bt10,000.
Energy Absolute eyes Bt1.5 bn revenue from solar project in 2014
Energy Absolute hopes to realise revenue of Bt1.5 billion next year from its solar-farm project in Nakhon Sawan province, said chief financial officer Amorn Sapthaweekul.
Solar cells are now being installed at the 90-megawatt facility on 1,850 rai (296 hectares). The company expects the project to be completed in time to start supplying power to the Electricity Generating Authority of Thailand in December.
He said operating results so far this year had been better than last year, as the company has realised full revenue from an 8MW solar-farm project in Lop Buri.
Eco-industrial towns to number 11 by 2018, minister says
The Industry Ministry plans to establish 11 eco-industrial towns by 2018 in the provinces where industrial zones are located, such as Samut Prakan, Ayutthaya, Rayong, Lamphun and Songkhla, says Minister Prasert Boonchaisuk.
Such towns will be established in both long-standing industrial zones and upcoming ones.
Tourism council eyes rallies
Tourism companies are closely watching the development of planned political rallies on the concern that they could affect the industry in the high season.
If the rallies drag on or get violent, this will affect the confidence of inbound tourists, said Tourism Council of Thailand president Piyaman Tejapaibul. She hopes that all involved parties maintain the country’s security and act in accordance with the law.
She noted that there would be two key events early next month, Parliament’s deliberation of the amnesty bill in the second and third readings and the International Court of Justice ruling on the Preah Vihear dispute on November 11.
KAsset announces Asia-based equity fund
Kasikorn Asset Management has introduced the K Asian Smaller Companies Equity Fund (K-ASIA). The fund’s initial public offering is scheduled from October 31 to November 6. Minimum investment is Bt5,000.
Navin Intharasombat, first senior vice president of KAsset, said the Asian economy continued to deliver satisfactory growth, despite a slowdown from the previous year. The region’s economy will also benefit from recovery in developed markets including the United States and the European Union, as well as rising intra-regional trade.
The US, the EU, Japan and China account for one-third of the region’s total exports. Moreover, the upcoming Asean Economic Community will benefit Asian stock markets and long-term investment, KAsset believes.
In light of this, K-ASIA will invest in Asian stocks via an underlying fund, Templeton Asian Smaller Companies Fund. The master fund is rated five stars by Morningstar, an independent investment research provider.
K-ASIA’s policy focuses on long-term investment in Asian small and medium-sized companies with high growth potential and market capitalisation of about US$2 billion. Average market capitalisation of stocks in the portfolio is about $1.4 billion or Bt40 billion to Bt50 billion, large compared with Thai stocks.
K-ASIA policy is to cover foreign-exchange risk to at least 75 per cent of total foreign investment.
DTAC earns Fitch upgrades
Fitch Ratings has upgraded Total Access Communication’s long-term foreign-currency and local-currency issuer default ratings to “BBB” from “BBB-”, national long-term rating to “AA(tha)” from “A+(tha)”, national short-term rating to “F1+(tha)” from “F1(tha)” and senior unsecured rating to “AA(tha)” from “A+(tha)”. The outlooks on the long-term ratings are “stable”.
The rating upgrade reflects Fitch’s view that the issuance of new third-generation cellular licences last year was a positive step for Thai regulatory and policy frameworks. The new licences have provided a clearer regulatory, policy and legal framework and promoted a more level playing field among telecom operators, compared with the concession system.
The spectrum allocation is likely to boost DTAC’s network capacity and support rapid growth in mobile data traffic over the medium term. Fitch expects non-voice revenue for the Thai mobile sector to continue to grow by 25-30 per cent per annum over the next two years.
The potential increase in non-voice revenue should help offset slower growth in the traditional voice service.
The licence fees and high investment in the 3G network will lead to an increase in DTAC’s net debt and financial leverage over the next three years, but Fitch believes that its solid operating cash-flow generation and large rating headroom should help the company absorb the effect of higher capital investment.
UBS recruits investment banker
UBS has announced the appointment of Weeratos Simapichaicheth as head of corporate client solutions for Thailand. He is one of Thailand’s most senior investment bankers with more than 11 years of origination and execution experience as well as close relationships with the country’s regulators and leading companies. The appointment is effective January 14.
Most recently, Weeratos was assistant managing director at Phatra Securities. He brings a large number of close client relationships and extensive transaction experience, having recently lead merger/acquisition and financing deals including the merger between PTT Chemical and PTT Aromatics and Refinery to create PTT Global Chemicals and the subsequent sale of PTT Phenol to PTTGC; PTT Exploration and Production’s US$3-billion (Bt93-billion) equity offering; and Siam Cement’s $380-million acquisition of Thai Plastic and Chemicals.
