Bangkok--8 Apr--SCB
Executives from PPT PCL (PTT) and Siam Commercial Bank PCL (SCB), two of Thailand's leading firms, ink a record 12 billion baht loan agreement. Seeing opportunities amid the current economic crisis and confident in the success of Thailand's economy in the long-term, the loan will help PTT further expand its domestic and overseas businesses. At the same time, the deal underscores SCB's policy of continued corporate lending and client care.
Commenting on the loan, PTT President and Chief Executive Officer Mr Prasert Bunsumpun said, “PTT has signed a long-term 10-year loan agreement for 12 billion baht with SCB to bolster business readiness. Amid the economic recession and volatile financial markets, PTT is focusing on careful business operations, cost savings, cutting down and delaying slow income-generating investments, and enhancing operational efficiency. PTT has also prepared adequate liquidity for investments as per its action plan, including the acquisition of potential businesses affected by the financial crisis at a cheaper price. Financial support from SCB will not only promote business in the energy sector, Thailand's key economic driver, but also help revive the overall economy and improve business confidence.”
SCB Chairman of the Executive Committee Dr. Vichit Suraphongchai added, “SCB is very proud to be entrusted by PTT as sole creditor providing this long-term 10-year loan of 12 billion baht. This remarkable financial agreement follows an earlier deal, whereby SCB was the joint lead arranger of PTT's long-term 15-year debentures worth 15 billion baht for both institutional and retail investors.”
Dr. Vichit continued, “SCB warned of the effects of the US financial crisis since its beginnings in late 2008, and forecast possible impacts on the Thai economy and our clients. These will be severe, and it will take a long time before an economic revival is at hand. During the crisis firms may need to engage in deleveraging or asset disposal, negatively affecting asset prices. This provides an opportunity amid the crisis for clients like PTT to continuously expand their business and investments.
The deal between PTT and SCB highlights the Bank's work in assisting clients in raising large amounts of capital, emphasizing its policy of continued corporate lending and client care in every situation. Notably, the cooperation between these two leading Thai firms will be of great help in boosting the country's economy and a memorable strategic partnership.”
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