Sunday, September 27, 2020

SEC extends TMBAM Eastspring's liquidation period

Jul 03. 2020
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By The Nation

The Securities and Exchange Commission (SEC) has approved the proposal by TMBAM Eastspring to extend the liquidation period for another 90 days to enable sales of remaining assets worth Bt80 billion.

Boonchai Kiatthanawit, director of TMB Asset Management (TMBAM), said that after the TMBAM Eastsping closed four mutual bond funds at the end of March, the company had repaid Bt68.671 billion to bondholders, accounting for 34 per cent to 55 per cent of assets in each bond fund.

"The value of four assets at the end of last year was Bt246 billion, while the value after closing the bond funds in April this year was Bt149.069 billion," he said.

"Currently, four bond funds still have assets worth Bt80 billion. If we accelerate the sale of assets inconsistent with the market liquidity, the value repayment to bondholders will drop significantly."

He said that to maintain bondholders' benefits and sell assets at a reasonable price, the SEC has approved the TMBAM Eastspring proposal to extend the repayment period for another 90 days until October 7 from the previous liquidation period on July 9.

"The company will sell assets at a reasonable price to maintain bondholders' benefits within 90 days," he said. "Meanwhile, we are still cooperating with partners on selling assets via various market channels to repay bondholders as soon as possible."

He expected the bond market to recover in the second half of this year from the government's supportive measures, adding that there was no abnormal behaviour among investors while redeeming fund units after the bond funds were closed.

"We have to monitor various factors that may affect the company amid the market volatility to gain confidence among bondholders," he added. "Meanwhile, we will provide information about the market situation, funds under the company's management, and investment guidelines for investors."

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