Late news :Bank offers help for ailing firms
The Small and Medium Enterprise Development Bank of Thailand (SME Bank) is allocating Bt1 billion to help indebted private companies revive businesses that have been affected by the slowing economy.
According to SME Bank president Pongsak Chewcharat, the bank will expedite help to companies that "show strong dedication" and demonstrate growth potential. Once the debts are restructured, the bank will consider lending new money for working capital. The bank will consider helping such companies either through equity participation or with loans. The loans will have terms of no more than five years and carry an interest rate of one percentage point above commercial banks' minimum lending rate. Pongsak said that when debtors lack new funds they have to borrow from "unorganised markets", only to suffer from the interest costs, and some have had to shut down.
Listing sealed UBIS (Asia), an integrated manufacturer of can sealing compounds and can coatings, will list on Thailand's Market for Alternative Investment (MAI) on Wednesday. According to MAI president Chanitr Charnchainarong, the firm will use "UBIS" as its trading symbol. UBIS has Bt190 million in paid-up capital, comprised of an existing 145 million common shares and 45 million shares in a capital increase, each with a par value of Bt1. On April 26 and 27, the company sold its 41 million capital increase shares to the public at Bt1.75 per share, and sold another 4 million shares to UBIS employees at Bt1.40 apiece. Asia Plus Securities acted as the firm's financial adviser and underwriter. The IPO price of UBIS shares reflected a price/earnings (P/E) ratio of 8.33 (based on the MAI's P/E of 9.26 as of April 18). The company's dividend-payment policy is to pay no less than 40 per cent of its net profit after tax and legal reserves.
SCIB cuts rates Siam City Bank has cut its lending rates by 25 basis points and deposit rates by 25-50 basis points, effective April 30. After the cut, the bank's minimum lending rate is 7.50 per cent per annum, down from 7.75 per cent. SCIB's three-month fixed deposit rate is now 2.75 per cent, down from 3.25 per cent previously. Banks have started cutting their lending and deposit rates in line with the Bank of Thailand's policy-rate cut. The central bank may cut its policy rate further at its next meeting on May 23 in order to stimulate the ailing economy.
|
