Siam Commercial Bank (SCB) said it has extended loans to a subsidiary of duty-free retailer King Power Group to finance a Bt14-billion asset purchase from Pace Development Corporation (Pace).
Wasin Saiyawan, senior executive vice president and head of multi-corporate segment and corporate segment at SCB, said the acquisition of assets of the MahaNakhon project has been financed by both borrowings from SCB and the capital of King Power MahaNakhon, a subsidiary of King Power Group.
Pace’s sale of assets in the MahaNakhon project followed its plan to ease the developer’s liquidity problem with some of the proceeds earmarked for debt repayments.
“Normally, after completion of a condominium project, customers will make booking of the units. After transfer, the company will start to make income and begin repayments to the bank,” Wasin said.
In the first quarter of this year, SCB’s loan growth met the target, he said, adding that the bank expects to see a 5-6 per cent increase in new loans of about Bt30-Bt40 billion this year. Large loan growth is estimated at 10 per cent year-on-year for the first quarter of this year.
“The number of the bank’s large-sized customers continue to grow amid positive sentiment given support factors ranging from infrastructure projects and the fiscal stimulus plan while the bank’s non-performing loan (NPL) remains low at 1 per cent of total outstanding lending,” Wasin said.
In regard to the situation of large-sized customers, the bank will, this year, focus more on customers who need short-term loans or loans for working capital as such customers could have extended borrowings, while relationship between the bank and the customers could be strengthened as to encourage customers to use other services the bank has offer, he said.
The bank will emphasise more on customers in supply chains and business working capital, aiming to raise the proportion of short-term loans from 30 per cent to 40 per cent, he said. Currently, long-term loans account for 70 per cent of total outstanding loans.