Bangkok--6 Aug--KASIKORNBANK
Seeing an 800 billion Baht opportunity, KASIKORNBANK has assembled a team of over 70 KASIKORNBANKGROUP personnel commanded by leading executives, as the KBank Investment Banking Business Division. The new division will capture increasing shares of the growing market of over 220 projects at home and abroad through advisory and capital raising services. Certain of continuing business investment activity, KBank is targeting 35% growth in its investment banking business over the next three years, securing its hold on the market lead.
According to Mr. Krisada Lamsam, Senior Executive Vice President of KASIKORNBANK, Thai business investments at home and abroad have been trending significantly upward, with total large project investments this year anticipated at 800 billion Baht. Of these, about 40% are multinational, 20% in local markets in major provinces, and another 40% in infrastructure. Not only large corporations, but also medium-to-large companies are looking at expanding production capacity and investments abroad. This marks a turning point in seeking greater competitiveness on the regional and global levels, generating demand for consultation in marshalling capital, forming partnerships, and in other areas of service and financial structuring.
In response to growing demand for capital and the trend toward internationalization among our customers, and to ensure continuing business expansion for those customers, KBank has formed the Investment Banking Business Division, boosting our capacity to give advisory and capital raising services. Mr. Panop Ansusinha has been named head of the new Division, with Mr. Suradech Kietthanakorn, Investment Banking Business Head, supervising debt market affairs and Mr. Manpong Senanarong, Investment Banking Business Head, overseeing equity market affairs. The team will work with Mr. Vasin Vanichvoranun, KBank Corporate Business Division Head and customer relationship managers providing customers with the best in professional services.
According to Mr. Panop, the Division will be guided by KBank’s customer-centricity philosophy, focusing on customer needs and on the expansion of their businesses. Emphasis will be placed on coordinating outputs from a number of products raising capital in the debt and equity markets, both at home and abroad. Staffed by experts with international experience, the advisory team will procure syndicated loans, and issue and offer debentures, as well as units in mutual property funds, mutual infrastructure funds and real estate investment trusts (REITs), and providing financial advisory services. They will also give consultation on raising capital through the equity markets via initial public offerings (IPO), mergers and acquisitions, and joint ventures. KGroup’s management structure together with its ability to provide complete business solutions will ensure that services are given efficiently and effectively, building up the competitive potential of our customers and leading to sustainable growth for Thai businesses.
KBank has for some time been a market leader in raising capital through a variety of projects for major companies. Since the beginning of this year, among about 70 projects totalling 330 billion Baht, KBank has provided services to 40 projects at a value of 225 billion, boosting Bank fee income by 10% the first half of this year.
Over the second half of this year, more than 150 business projects, with an investment value of 470 billion, will be seeking new capital, 90% of which will be accessed through borrowing and project financing and the remaining 10% through IPO, public offerings (PO), and mergers and acquisitions, creating demand for consultation in these areas. New capital funds are needed for business expansion in many industries, for example, energy, construction, petroleum, property, food and agro-industrial products.
As the ASEAN Economic Community approaches, more large Thai companies will be investing abroad. That, in turn could lead to their listing on foreign stock exchanges to raise capital or for cross-border mergers and acquisitions. KBank’s investment banking team stands ready to provide services for these activities at the regional level. A strong competitive point for the Bank is its strategic partnership with the Macquarie Group, the top investment bank of Australia, as the Bank’s business partner.
According to Mr. Panop, the Bank is confident in the investment team’s ability to respond to customer needs along all dimensions, assisting them in raising capital both domestically and abroad with its professional staff, and a strong network in all types of business and industry, and its international alliance. The Bank is targeting growth in its investment banking business of over 35% over the next three years, securing its position as market leader.