TRUEIF to borrow Bt14 bn to invest in infrastructure
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THE True Telecommunications Growth Infrastructure Fund plans to borrow up to Bt14 billion to invest in True Corp's telecom infrastructure to expand its assets and rental income. Smith Banamyong, president of SCB Asset Management, which manages TRUEIF, sa
The fund will invest in 20-year leasing rights to True’s fibre-optic network, and the right to purchase that asset for Bt500 million at the end of that term. It will also have the right to net income from rental of True’s 338 telecom towers for at least 11 years.
Approval sought
The fund will ask for approval of the plan from unit holders at their meeting on February 27.
The fund’s asset value is Bt72.1 billion, which is expected to |rise to about Bt100 billion this year.
Of its assets, 65 per cent is used by True’s telecom business.
The fund is wooing other companies to rent its assets. Total Access Communication (DTAC) recently leased 100 telecom towers from the fund.
TRUEIF saw net income from operations of more than Bt17.9 billion last year. Income in 2013 was far lower as operations only started on December 23 that year, for a total of nine days.
The fund saw an increase in net assets from operations of Bt17.931.80 billion last year, or an increase of Bt17.658.27 billion – almost 6,500 per cent – from the same period last year.
This is because the operating period last year started on December 23, 2013 when the fund was established. It was a approximately nine-day operating period. The operating period last year was 12 months.
As of February 3, True owned 28.1 per cent of the fund, followed by Siam Commercial Bank with 10.0 per cent.
