Bangkok--Jun 23--Mastermind
IFS, a leading financial institution from Singapore expresses confidence in Thai Economy — Invests in Advance Finance PCL.
Advance Finance PCL (Advance Finance) today (June 23, 2005) announced that International Factors (Singapore) Ltd. (IFS) has agreed to take a 10% equity stake in Advance Finance with a view of increasing this to 49% subject to Bank of Thailand’s and other regulatory approvals.
Advance Finance PCL, formally known as Global Thai Finance Company Limited was formed as a result of a management buyout in March 2004 from Lehman Brothers, a leading U.S. Investment Bank.
Khun Daranee, CEO of Advance Finance along with senior management forged ahead by restructuring the organization to focus more on profitability, streamlining the businesses, execution of the deals with creative local and international solutions to ensure Advance Finance stay competitive and relevant to the rapidly changing financial markets.
Products which Advance Finance currently focuses on are direct Lending, Real Estate financing, Mortgage financing and also Structured Finance.
Strong Performance
The nine months since taking over the Company until at the end of 2004, the Total Assets of the Company grew from Baht 1,542 million to Baht 4,350 million. The Revenue grew from Baht 98 million to Baht 168 million. Loan growth increased from Baht 1,227 million to Baht 2,828 million. Deposits increased sharply from Baht 948 million to Baht 3,660 million. Profits increased from Baht 1.9 million to Baht 60.7 million and the Shareholder’s Equity is at Baht 622 million.
Looking forward, Advance Finance expects a profit of Baht 70 million for 2005 and strong earnings growth in the following years powered by existing and new businesses with IFS’s participation.
Strategic Partner
Khun Daranee Huachai, CEO of Advance Finance, said that “the company searched for a strategic partner to strengthen the company’s shareholding structure and to support its business expansion for the long term. In this respect, International Factors (Singapore) Ltd. was the perfect candidate for this partnership, given that IFS had strong substantial shareholders including Phillip Assets Pte. Ltd. which is part of PhillipCapital.” Khun Daranee added that “ in addition to IFS’ stake in Advance Finance, and their potential increase in shareholding, the company is also in the process of reducing management’s shareholding to an appropriate level while increasing Thai institutional and individual investors which have synergy value to the Company and this is expected to be completed by the end of the year.”
IFS is an established financial institution in Singapore. IFS Group offers factoring, loans, leasing, structured finance, credit insurance and guarantees and a broad range of financial services. In July 1993, IFS was listed on the main board of the Singapore Stock Exchange. As at 31 December 2004, IFS has Group Total Assets of S$415 million (Baht 10,100 million) with Group Profits of S$8.1 million (Baht 197 million) and Shareholders Equity of S$95.8 million (Baht 2,331 million).
Mr. Lee Soon Kie, CEO of IFS said, “This investment demonstrates IFS’ confidence in the Thai economy and is another step towards realizing IFS’ regional ambitions for expansion. Advance Finance was chosen as strategic investment because of the growth potential and a dedicated management team. Although IFS currently has operations in Thailand through Ayudhya International Factors (AIF) in a joint venture with Bank of Ayudhya, the intention was for AIF to focus on factoring. IFS will use Advance Finance as the platform for its business expansion in Thailand through cross border capital raising and structured finance. Advance Finance may also expand into leasing, hire purchase and private equity.”
Advance Finance plans to list its shares on the main board of the Stock Exchange of Thailand within the next 3 years. End.