Economy June 03, 2014 00:00

By The Nation

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Buriram Sugar set for IPO issue

Buriram Sugar, the pioneer of the sugar industry in the Northeast, has submitted an application and other filings with the Securities and Exchange Commission to issue almost 170 million initial public offering (IPO) shares as it moves to become a listed firm.
The company has appointed KT ZMICO Securities as its financial advisor.
Chaipatr Srivisarvacha, executive chairman of KT ZMICO Securities, said the 169,182,500 capital-raised ordinary shares represented 25 per cent of the company’s distributed and paid-in ordinary shares.
Buriram Sugar’s registered capital stands at more than Bt676 million, and has distributed and paid-in capital of more than Bt507 million, represented by 507,567,500 shares with a par value of Bt1 each. 
It produces and sells raw sugar and brown sugar in Thailand and abroad, as well as utilising by-products of the sugar-production process, including bagasse and filter cake, to offer a comprehensive range of products through five subsidiaries.
They are Buriram Sugar Factory Co Ltd, Buriram Energy Co Ltd, Key Brand Fertiliser Co Ltd, Buriram Sugarcane Research and Development Co Ltd and Buriram Power Co Ltd. Buriram Power is currently constructing its new co-generation plant.
Chaipatr said the capital raised by the IPO would be used to finance sugar production-capacity expansion and biomass power plant projects as well as repay loans to reduce finance costs and allocate it as working capital.
KBank/TCC card 
Kasikornbank and the Thai Chamber of Commerce (TCC) have jointly issued the KBank-Thai Chamber of Commerce co-branded credit card. The card offers business and personal benefits, with special lending rates, discounts from provincial chambers of commerce and rights to participate in TCC training courses. 
Kbank aims to issue 200,000 cards within five years.
Kbank president Predee Daochai said the bank, TCC, the Board of Trade of Thailand and provincial chambers of commerce introduced the credit card, which had superior features to other credit cards.
Predee said it was first and only card that combined cardholder privileges in business and personal spending, with it offered by KBank and TCC members across the country.
A variety of discounts and privileges are available to cardholders, including 10-20 per cent discounts for seminar and training course fees, discounts for export certificate issuance fees and free online seminars for business enhancement ahead of the Asean Economic Community inception. Cardholders will be eligible for bank loans with special rates, including K-Klean Credit, K-Franchise Credit, K-Auto Finance (Refinance) and K-Home Loan. 
Cardholders will also enjoy discounts from merchant members of provincial chambers of commerce nationwide along with privileges, discounts and special offers under more than 400 K-Credit Card promotional campaigns launched during the year. 
Govt Savings Bank earmarks Bt50 bn for rice payments
The Government Savings Bank is ready to join the bidding to offer a Bt50 billion loan to the government so that it can pay farmers for their pledged rice.
Acting president Tachaphol Kanjanakul said yesterday that the bank has no problem with the schedule for delivering the funds on this Friday and next Friday, as it faces liquidity of about Bt300 billion.
The Public Debt Management Office (PDMO) will today accept bids from financial institutions.
Chularat Suteethorn, director-general of the PDMO, said several financial institutions are interested in lending the amount to the PDMO and the financial institution that offers the lowest interest rate will win.
According to the PDMO, the winner is required to send the first tranche of Bt30 billion to the Finance Ministry this Friday and the remaining Bt20 billion on the following Friday.
The Bank for Agriculture and Agricultural Cooperatives (BAAC) is expected to pay off the overdue debt of Bt92 billion to all 1.52 million farmers in the rice-pledging scheme by June 22.
Luck Wajananawat, managing director of the BAAC, said that as of yesterday, the bank had paid Bt36.8 billion to 365,055 farmers using its own liquidity of Bt40 billion. All overdue payments should be made by June 22.
Moody’s affirms Thailand’s Baa1 rating; outlook stable 
Moody’s Investors Service yesterday affirmed Thailand’s long-term issuer ratings at “Baa1” with a stable outlook on the view that the country’s fundamental credit strengths remain largely intact despite the political confrontations.
The military coup and the lingering political uncertainty are not expected to undermine Thailand’s credit strengths to a material degree over 12-18 months, it said.
Thailand’s short-term, prime-2 commercial paper programme rating, provisional “Baa1” MTN/Shelf issuance rating and “Baa1” Japan bonds/Thai bonds issuance rating were also affirmed.
The key drivers for the sovereign affirmation were the government’s unimpaired ability to manage its finances, strong institutional anchors that are unaffected by the military coup and sustained external strength. 
Moody’s has also affirmed the senior unsecured “Baa1” rating for the Bank of Thailand.
A positive rating outlook or rating upgrade looks highly unlikely at this time, but potentially credit-positive developments would include an improvement in the political climate and a transparent roadmap for reform that clearly outlines the way from military rule towards a stable civilian government.
Factors that could trigger a negative rating outlook or a rating downgrade include an escalation of conflict between the military and protesters resulting in significant and potentially long-lasting effects on tourism or manufacturing, a significant rise in government funding costs related to domestic political uncertainty or a lapse in fiscal discipline, and/or a sharp deterioration of the balance of payments and significant loss of official international reserves.
Marubeni invests in Cambodia
Marubeni Corporation has invested in the power sector in Cambodia.
The Japan-based trading house has entered into an agreement with HNG Capital to acquire a 20-per-cent stake in Leader Infrastructure. 
Leader Infrastructure owns Cambodian Energy, which owns and operates two 50-megawatt coal-fired power stations in Sihanoukville, and Cambodian Transmission, which owns and operates the transmission line and substation between Kampong Cham and North Phnom Penh.
Leader Group, which HNG Capital belongs to, is the largest cable and wire producer in Malaysia and Southeast Asia. It is also a pioneer of foreign Independent power producers in Cambodia, having operated a 35MW diesel engine power plant there since 1997. It was engaged in the development of CEL/CTL since the 2000s and both projects commenced commercial operation in 2013.
HNG Capital was seeking a strategic partner who could contribute positively and enhance the efficient operation of these two projects and decided to invite Marubeni, which was willing to participate in the Cambodian power sector.
This is the first time for a Japanese company to participate in the Cambodian power market. Marubeni will continue to seek business opportunities in new power markets globally.