Market leader KBank aims to stay on top

The country's fourth-largest bank by assets last year ranked No 1 in corporate-bond underwriting and syndicated loans with market shares of 18.3 per cent and 37.9 per cent, respectively.

Under the bank's arrangements last year, corporate bonds amounted to Bt35,97 billion and syndicated loans US$469 million (Bt15.5 billion).

The bank can provide several alternatives for fund mobilisation to customers under KBank group synergy, Vikran Paovarojkit, head of the capital markets business, said yesterday.

Right now, the bank has about 10 customers in the pipeline demanding to raise funds via bond issuance and syndicated loans. They are mainly engaged in the energy sector - particularly power plants - as well as real estate, transportation and vehicles.

The bank has predicted that corporate bond issuance this year will be to the tune of Bt170 billion - lower than last year's Bt190 billion, due to the upward trend in interest rates.

"We expect the amount of fund mobilisation via bond issuance and syndicated loans under the bank's arrangements to be at least Bt50 billion this year, the same as last year," Vikran said.

With positive prospects for the country's economic growth, private investment is expected to improve this year with a growth rate of 2.5-6.5 per cent from 1.1 per cent last year. Meanwhile, growth in domestic consumption this year should be in the range of 2-4 per cent, up from 1.8 per cent in 2007.

 The positive projection is based on improving internal factors, particularly a clearer political picture. This will restore investor and consumer confidence.

Meanwhile, the capacity utilisation of the private sector has been increased to 75 per cent in the past few years, which is why the bank believes it is time for new investment.

KBank has predicted economic growth of 4-5 per cent for this year.

Somruedi Banchongduang

The Nation