Bangkok--5 Feb--SET
The Stock Exchange of Thailand (SET), has gained approval by SET Board of Governors to invest THB250 million in the restructuring of Thailand Securities Finance Corporation (TSFC), SET President Patareeya Benjapolchai disclosed. IFAC Investment Advisory Co. Ltd., an independent financial advisor (IFA), had studied on the possibility of the TSFC restructuring plan and reported the potential success. As suggested by its independent financial advisor, TSFC must receive cooperation from its existing and new shareholders in its operation and management. TSFC must have new investment funds of not less than THB800 million (including the THB250 million from SET). Moreover, the restructuring plan must be approved by its creditors and have additional capital resources to support the business expansion and operation.
IFA pointed that providing loans for securities trading and securities businesses can be the main business of TSFC, although they do not provide much return, while providing private repos is more promising.
TSFC also helps facilitate securities firms to access capital. Thus, brokerages should give importance to TSFC’s restoration plan, and the firms using TSFC’s services should together invest not less than THB150 million..
The Exchange has hired Thanachart Securities PCL to analyze TSFC’s offering private repo services, while IFA supports TSFC to take private repo as its new business. This type of activity should have a high chance of growth, since the government bond market is expanding, providing more alternatives for investors, and creating business opportunities for securities firms.
For more information, please contact Public Relations Unit, the Corporate Communications Dept.:
Ladawan Kantawong Tel: 0-2229-2036 /Watsamon Saowakhonsathien Tel: 0-2229-2797/Panitee Chatpolarak 0-2229-2792