CIMB Thai Bank named financial adviser for Bt2-billion-plus issue of Islamic bonds
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CIMB THAI Bank expects to be involved in the issue of Bt2 billion to Bt3 billion in Islamic (sukuk) bonds for a Thai corporate in the first half of next year, president and chief executive officer Subhak Siwaraksa has said.
The bank was appointed as financial adviser to the corporation in question, but Subhak said he could not reveal the name of the customer.
Bond issuance is part of the investment banking business which CIMB Thai has strongly focused on this year, especially in initial public offerings and property funds, in a bid to boost fee income.
The Malaysia-base bank considers sukuk bonds an alternative financial instrument. The bank in the past helped a PTT Group subsidiary raise funds via sukuk bonds in Malaysia.
Investment banking accounts for 20 per cent of CIMB Thai Bank’s fee income, he said.
In the remaining months of the year, the bank is confident of achieving loan growth of 20-25 per cent. The key driver in the current fourth quarter will be retail loans, especially mortgages and working capital for corporate customers.
Being a small bank, CIMB Thai needs to grow at a higher rate than the overall banking industry, and it predicts growth of 15-20 per cent next year.
“We will lend to the auto-parts, electronic-parts and seafood industries, which are potential sectors to support the bank’s growth,” he said.
Moreover, the bank will actively pursue the tourism sector, such as hotels and property in tourist-destination provinces.
Meanwhile, Subhak revealed that the launch of CIMB Thai Bank’s first overseas branch in Laos was behind schedule because it had been unable to find a good site for the branch.
However, he believes that the Laos branch could be launched within the first half of next year. It will offer lending, trade finance and treasury services to Thai and Laotian businesses of all sizes.
Krungsri Group is one Thai bank that has aggressively made a presence in Laos by setting up a joint venture with a finance company there to provide instalment loans. The group last week announced a strategic partnership agreement with Banque Pour le Commerce Exterieur Lao, the largest bank in Laos by asset size and ATM coverage. It offers cross-border cash withdrawals for holders of debit and credit cards of both banks.
