Bangkok--12 Jan--Siam Commercial Bank
Confirming its ambitious vision of providing end-to-end solutions for its customers, Siam Commercial Bank has been selected to act as lead manager of a large financing transaction worth 250 million US dollars (8.25 billion baht) for the Charoen Pokphand Group(C.P. Group), with the funding to be used for the C.P. Group’s enhancement of its Lotus Supercenter in China under the operation of Chia Tai Enterprises International Limited (CTEI), a subsidiary company of C.P.Group and listed on the Hong Kong Stock Exchange. Bangkok Bank and Siam City Bank are also participating in this remarkable deal. Due to its complex nature, this financing arrangement marks another important milestone in sophisticated on-shore and off-shore project financing structured in US dollars and Renminbi. Tremendous efforts were made throughout the arrangement of the deal as it must comply with the relevant regulatory requirements of the monetary authorities concerned. The transaction undeniably reaffirms the outstanding position of Thailand's two leading business firms. While the C.P.Group has been widely recognized for its clear vision and potential in expanding business globally, Siam Commercial Bank and parthners have demonstrated its beyond-boundary expertise in offering sophisticated transactions meeting and even exceeding client demands.
Speaking about the success of the deal, C.P.Group Chairman and Chief Executive Officer Mr. Dhanin Chearavanont said that, "The C.P. Group was the first foreign company receiving permission to operate businesses in China. The funding will be used for strengthening our Lotus Supercenter branch network in China. Confident in future business opportunities in China, we launched the Supercenter business in 1997. The confidence shown by Siam Commercial Bank and partner banks, Bangkok Bank and Siam City Bank for this deal will no doubt enhance the Group's capabilities in supporting its business expansion and competitiveness in the future. This is one of the most important milestones in the long history of the C.P.Group."
Siam Commercial Bank Chairman of the Executive Committee Dr. Vichit Suraphongchai noted that, "It is with great pride that we take part as the mandated Lead Arranger and Lead Underwriter for this deal. Upon learning of the C.P. Group's requirements, we made every effort to work closely with them to be able to offer an end-to-end solution aligned with the Group's capital requirements. The deal was complex and unique, being an on-shore and off-shore syndicated project finance loan in 2 currencies. As the funding will be used for enhancing its business potential in China, the Bank was not only required to comply with the relevant regulatory requirements of Chinese authorities, but also to structure the deal to meet the funding requirements of the Lotus Supercenter business. With its foremost priority placed on service innovation, the deal definitely marks the Bank's strong capabilities as a financial solution provider. In closing, Dr. Vichit said that, "This transaction also reaffirms the Bank's position as a business partnership that always has confidence in its clients. Our trust in the C.P. Group's vision and potential, our ability to provide the right financial solutions, and this remarkable example of business cooperation will drive the future growth of the C.P. Group and the Bank itself, and will serve to bring the two firms to an even higher level of sustainable success in the long term."
Siam Commercial Bank PCL is a leading universal bank in Thailand. It was established by Royal Charter in 1906 as the first Thai Bank and, as at September 30, 2009, had the highest market capitalization among Thai Financial Institutions (Baht 289 billion). It has the largest branch (961), exchange booth (122), and ATM (6,798) network in the country, attesting to its dominant position in the retail financial services marketplace. It has a diverse range of Corporate, SME, Private, and Retail customers nationwide, and has an asset size of Baht 1,299 Billion). Further information is available on the Bank's web site at www.scb.co.th.
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