Retail investors who subscribe to the long-awaited Thailand Future Fund (TFFIF)’s initial public offering (IPO) units will receive the announcement of the number of their allotted fund units on October 22.
The infrastructure fund will make its IPO of 4-4.47 billion units , offering about 1.845 – 2.056 billion units to retail investors at a minimum of 1,000 units each at Bt10 apiece. The subscription period is scheduled during October 12-19.
For individual investors subscribing to the fund units over the minimum of Bt10,000 or 1,000 units, the leftover portions of Bt1,000 or 100 units will be marked out in the following rounds until the units are completely sold out.
Investors can buy the fund units at the head offices and branches of Bangkok Bank, Krungthai Bank, Phatra Securities, Krungthai Asset management, MFC Asset Management and Finansa Securities.
According to the Cabinet resolution, about 45 per cent of future revenue from two expressways – Chalong Rat and Burapha Withi expressways will be used to back the infrastructure fund’s units for 30 years from the date of the revenue transfer agreement, said Anuwat Ruamsuke, head of capital markets at Phatra Securities – the fund’s financial adviser.
Both expressways are owned by Expressway Authority of Thailand (Exat) which is expected to use the proceeds to finance construction of its expressway projects connecting Rama III Road with Dao Khanong and the Western Outer Ring Road, and the third stage of the northern expressway connecting to the Eastern Outer Ring Road.
Chavinda Hanratanakool, chief executive officer of Krungthai Asset Management which will manage the TFFIF, said the infrastructure fund’s policy is to pay dividend to its unit-holders at least twice a year if the fund has generated sufficient profit.
The fund’s first-year return is estimated in a range of 4.75-5.30 per cent
The Ministry of Finance will hold no less than 10 per cent of the TFFIF units for five years from the date the units start trading on theSET. Retail investors will be waived from tax levied on the fund’s dividend for eight years.
CARRIER GROUNDED OVER OVERDUE DEBT
The Civil Aviation Authority of Thailand has officially suspended the Air Operator certificate (AOC) of Orient Thai Airlines Co Ltd for an indefinite period, after finding the airline had failed to pay overdue debt to several aviation state agencies, Chula Sukmanop, director-general of CAAT, said.
He added that the airline was also found to lack liquidity. It can ask for the return of its permit once it has cleared its debts.
COST OF DISASTERS LINKED TO WARMING SOARS: UN
The economic cost of climate related disasters hit $2.25 trillion over the last two decades, an increase of more than 250 percent compared to the previous 20 years, the UN said yesterday.
The United Nations Office for Disaster Risk Reduction (UNISDR) noted that “climate change is increasing the frequency and severity of extreme weather events” such as floods and storms. Between 19781997, total losses for climaterelated disasters was $895 billion (780 billion euros), UNISDR said in a report by the Centre for Research on the Epidemiology of Disasters (CRED) at the Universite Catholique de Louvain in Belgium.- Agence France-Presse