AOT earmarks Bt50 bn for new projects
Airports of Thailand will today propose a Bt50-billion investment plan – including a new terminal at Suvarnabhumi Airport – to Transport Minister Air Chief Marshal Prajin Juntong before submitting it to the Cabinet, said AOT board chairman Prasong Phunthanet.
The new terminal is expected to cost Bt24 billion.
Prasong said the passenger load for the 2014 fiscal year (October 2013 to September 2014) for its six airports had grown by 1.6 per cent to 87.5 million year on year.
The number of domestic passengers had increased by 14.1 per cent but the number of international passengers had dropped 5.7 per cent, Prasong said.
Two Thaicom tranches
Thaicom’s board of directors yesterday approved the issuance of debentures of no more than 4,550,000 units – equal to but not exceeding Bt4.55 billion – to repay the loans of the Thaicom 7 satellite project and invest in the Thaicom 8 project.
The debentures will be issued in two tranches with terms of five and seven years.
They will be offered to individual and institutional investors. The offered price per unit is Bt1,000.
Tris Rating Co has given the debentures an “A-” rating. The outlook remained “stable” as of July 29.
The five-year first tranche has an interest rate of 4.28 per cent per annum and the seven-year second tranche’s interest rate is 4.68 per cent per annum.
The new lot is being offered until tomorrow through four underwriters – Kasikornbank, Thanachart Bank, Krungthai Bank and Standard Chartered Bank (Thai).
AEC ‘good for Cambodia’
Moody’s Investors Service says a milestone event over the medium term will be Cambodia’s integration with other economies in the region under the formation of the Asean Economic Community in late 2015.
It said greater regional integration, along with continued close ties with China, would support the goals of Cambodia’s development plan for raising investment beyond 25 per cent of gross domestic product and sustaining 7-per-cent annual GDP growth.
Moody’s said Cambodia’s real GDP growth had likely slowed slightly in 2014, because of political uncertainty and labour unrest, after expanding 7.4 per cent in 2013, powered by tourism revenues, garment exports and construction.
Its conclusions were contained in a newly released credit analysis on Cambodia that looked at the country’s credit profile in terms of economic strength (assessed as “low”); institutional strength (“very low”); fiscal strength (“medium”); and susceptibility to event risk (“medium”).
These are the four main analytic factors in Moody’s sovereign-bond-rating methodology. The analysis constitutes an annual update to investors and is not a ratings action. Cambodia is rated “B2” with a “stable” outlook.
With nominal GDP of US$15.2 billion (Bt493 billion), the size of Cambodia’s economy offers little shock-absorption capacity.
Although rapid strides have been made in reducing poverty, the country’s low GDP per capita is also a constraint on the rating, Moody’s said.
SEC, accountants’ group aim for more auditors
The Securities and Exchange Commission and the Federation of Accounting Professions under His Majesty the King’s Royal Patronage (FAP) plan to launch a capacity-building project to increase the number of SEC-approved auditors.
The project aims to give small and medium-sized enterprises more potential to raise funds through the capital market and enhance Thailand’s readiness to compete at the regional and global levels.
“The SEC initiated a ‘Capital Market Auditors’ project in preparation for increasing SME access to the capital market by increasing the number of auditors in that market and enhancing their capability to respond to changes in professional standards and more complex transactions,” SEC secretary-general Vorapol Socatiyanurak said.
“Under this project, auditors will be classified into two groups: auditors for companies in the capital market and auditors for companies to be listed on the SME board that will be launched in the future for accredited investors.
“In this regard, certain qualifications such as auditing experience, experience in certifying financial statements, and company size may be relaxed. It should be noted, however, that audit quality will not be compromised, as the SEC will require both groups of auditors to work for firms that are equipped with quality-assurance systems in compliance with professional standards.”
The SEC and FAP also agreed to develop a curriculum for listed companies’ chief financial officers, the key persons responsible for accuracy and reliability of financial reports, aiming to raise awareness of their responsibilities and importance of financial statement preparation. The introduction of the curriculum is expected by next quarter.
Muangthai Leasing plans IPO
The market leader in motorcycle financing, Muangthai Leasing (MTLS), will raise funds through an initial public offering to repay debt and to strengthen the business.
The company will offer 545 million new shares, of which 502.5 million will be offered to the public and the remaining 42.5 million to executives, directors and employees of MTLS. The company expects to list on the Stock Exchange of Thailand next quarter.
Chuchat Petaumpai, chief executive officer of MTLS, said the company would use the proceeds from the IPO to establish more branches and increase the portfolio of outstanding loans to Bt25 billion by 2017. As at the end of the second quarter, its loan portfolio was Bt6.5 billion, of which Bt5.4 billion was for motorcycles. The rate of non-performing loans was 1.72 per cent.
Second Pattaya Property Show
Around 62 developers will join the second Pattaya Property Show, which will take place from October 3-5 at Dusit Thani Pattaya.
Mike Bridge, managing director of Exact Trading, the organiser of the show, said Pattaya was Southeast Asia’s fastest-growing resort city, and the fair was aimed at expatriates and Bangkok residents looking for weekend houses.
“At the first Pattaya Property Show in January, we were up against the ‘Bangkok shutdown’, which naturally discouraged a lot of potential visitors from driving out of Bangkok. However, we did sell all the stand space, and 33 developers and a few realtors participated.
“After five weeks, the exhibitors reported excellent business, with estimated sales of Bt800 million, which showed that the demand for property in Pattaya is ongoing,” he said.