Thailand Future Fund to be launched in Q2
THE STATE Enterprise Policy Office expects to launch the delayed Thailand Future Fund, worth Bt40 billion to Bt50 billion, in the second quarter as one of the government’s financial tools for infrastructure development.
SEPO director-general Ekniti Nitithanprapas said yesterday at the “SET Thai Corporate Day” seminar that the first tranche of the TFF’s initial public offering (IPO) prospectus worth Bt40 billion to Bt50 billion would be filed with the Securities and Exchange Commission in March before being made available for sale to the public next quarter.
One-third of the fund will be used to complete the construction of the Rama III-Dao Khanong expressway project and the rest for other projects, Ekniti said. He added that the fund’s coupon rate was being considered.
One of the three projects underlying the fund are expected to ensure returns for investors. They are the Chalong Rat expressway (Ram Indra-At Narong), Burapha Withi expressway (Bang Na-Chon Buri), and Kanchanaphisek expressway (Bang Phli-Suksawad).
Ekniti said the TFF would gradually include two other two motorway projects – Motorway No 7 (Pattaya-Rayong) and Motorway No 9 (Bang Pa-in-Nakhon Rachasima) – worth about Bt60 billion.
“The TFF is likely to reach Bt100 billion as targeted, but whether it achieves the target this year depends on permitted situation,” he said.
He said the TFF would serve as an alternative funding source for state agencies to finance transport-infrastructure projects so that they would not need to wait for the government budget.
The government has outlined Bt1.7 trillion worth of investments over the next six years, which will result in a 10-per-cent-higher level of public debt. However, it says it will apply fiscal discipline, keeping the public debt from exceeding 60 per cent of gross domestic product.
Santi Kiranand, senior executive vice president of the Stock Exchange of Thailand, said the TFF should initially raise at least Bt20 billion, likely adding into the SET’s IPO this year. Excluding the TFF, the SET has set a target for IPOs this year at Bt280 billion, up from Bt90 billion last year.
