briefs
Mega-projects to raise GSB lending to Govt
The Government Savings Bank (GSB) aims to be the provider of one third of total lending to the government’s Bt350-billion water-management project, and to account for one-fourth of total lending to the government’s Bt2-trillion infrastructure-development project.
The move will raise lending to the state sector to 30 per cent of GSB’s total lending of Bt1.6 trillion, up from 20 per cent at present, said president Worawit Chailimpamontri.
ADB funds plants
The Asian Development Bank is providing US$85 million (Bt1.65 billion) for the construction of Solarco’s three solar power plants in the Central region.
Solarco is a special-purpose company owned by Yanhee Egco Holding, a subsidiary of Electricity Generating, the country’s first independent power producer and the second-largest private power producer.
The solar-farm project, the ADB’s fourth in Thailand, will have three main sites in Nakhon Pathom and Suphan Buri. They will be developed under the “very small power producer” programme that buys renewable energy from power plants to provide clean power to the grid.
With the new solar power plants, more than 66,000 tonnes of carbon dioxide equivalent emissions will be avoided every year during the first 10 years of operations.
The ADB will also provide a $33-million loan to Solarco to be financed by the ADB Clean Technology Fund, which is part of the Climate Investment Fund implemented by multilateral development banks to support the deployment of low-carbon technologies in the region.
Int’l law firms expand
International law firms are reacting to market opportunities and changing regulatory environments to expand their presence in the Asia-Pacific region, according to property consultancy Knight Frank.
Alex Hill, Asia-Pacific head of global corporate services, says that with this region continuing to be the growth engine of the world economy, it is no surprise that many international law firms are enlarging their footprints across the region.
SCCC rating affirmed
Fitch Ratings (Thailand) has affirmed Siam City Cement’s (SCCC) national long-term rating at “A(tha)”, its national short-term rating at “F1(tha)” and its senior unsecured debentures at “A(tha)”.
The outlook is “stable”.
The ratings reflect SCCC’s leading market position as the second-largest producer of cement and ready-mixed concrete in Thailand. This has helped maintain reasonable earnings before interest, taxes, depreciation and amortisation and EBITDA margin despite pressure from price competition and higher energy costs in the past five years.
SET ready to list new products
The Stock Exchange of Thailand is prepared for the listing of infrastructure funds and real estate investment trusts (REITs).
Infrastructure funds will be listed in the sector in which they are invested, to provide comparative price references. In this regard, the BTS Rail Mass Transit Growth Infrastructure Fund will be listed in the transport and logistics sector, like BTS Group Holdings. REITs will be listed in the property fund sector. Both will be included in the calculation of the SET Index, to reflect the market’s valuations.
Infrastructure funds and REITs are new products in Thailand. The former were launched this year and are expected to increase in number thanks to new investment projects. Next year, the latter will begin to replace property funds.
New Yangon hotel
Straits Greenfield, a subsidiary of Singapore’s Keppel Land, has won approval to invest US$80 million (Bt2.3 billion) in an international-standard hotel and serviced apartments in Yangon.
According to Eleven Media, the Phase 2 project will be located inside the existing Sedona Hotel compound. It reported that the project was approved under Myanmar’s Foreign Investment Law.
Waste subsidiary
Thailand’s waste-management and power subsidies have encouraged London-based Waste2Tricity, a waste-solutions provider for the energy sector, to set up a wholly owned subsidiary in this country.
Waste2Tricity International (Thailand), to be led by Thai engineer Piangkwan Thummukgool, will take advantage of the opportunities provided by the Kingdom’s expanding economy, and its inherent issues with waste management, the company said.
