Bangkok--29 Jan--Siam Commercial Bank
- Signs funding agreement with three local financial institutions
- Will implement three important projects
- Demonstrates commitment to further growth in Thailand and ASEAN
General Motors Thailand (GMTH) today celebrated the signing of an official agreement with three leading local financial institutions to secure investment funding and working capital.
The funds will be channeled to three of GMTH’s most important growth initiatives: a next-generation pickup, an SUV and a new diesel engine plant. These programs will be implemented over the 2011-2012 timeframe at GMTH’s manufacturing operations in Rayong, Thailand.
A loan syndication facility of 13.5 billion baht (US$409 million) was arranged by Bangkok Bank, Siam Commercial Bank (SCB) and Tisco Bank. Bualung Securities helped organize the financing by the three banks. In addition, General Motors Company contributed 3.89 billion baht (US$118 million) via an equity injection.
Steve Carlisle, President of GMTH/ASEAN and Chevrolet Sales Thailand (CST), said: “The signing of this agreement represents a significant milestone in the history of our company. We are now completely self-funded in Thailand and have established relationships with three of the strongest and most important banks in Thailand. We are grateful to our partners for the support they have provided.”
Carlisle added, “Our customers in Thailand and ASEAN are at the center of everything we do. Our commitment is to provide them the best cars and trucks. The three new programs will enable us to generate positive returns on our investment and become a successful company for the long term.”
Today’s announcement comes at a time when the domestic automotive industry has begun to show signs of stabilization, following a downturn. With exports picking up in the last quarter of 2009 and showing signs of continued strength, GMTH has a positive outlook for 2010 and beyond.
Bangkok Bank President Chartsiri Sophonpanich said, “Our bank is delighted to take part in providing this financial support to General Motors (Thailand). This new investment reflects the company’s confidence in the potential of the Thai automotive industry, and the opportunities for Thailand to benefit from regionalization, especially the implementation of the ASEAN Free Trade Agreement and the ASEAN Economic Community.”
He added, “For more than 10 years, General Motors has played a significant role in the Thai economy, particularly in growing the export value of the automotive industry. We look forward to working further with the company, supporting its position as an automotive leader in Thailand and Asia, and as a manufacturer of world-class vehicles.”
As a joint lead arranger for the facility, SCB President Kannikar Chalitaporn noted, “This financial deal with GM Thailand demonstrates the strength of SCB's premier universal banking services and innovative financial solutions. We have tailored the facility to fit GM Thailand's business and cash flow requirements to support their continued business expansion. This successful deal underscores SCB’s readiness as the Premier Universal Bank in Thailand, offering diverse financial services for every client group and providing the best financial solutions for our clients' business needs.”
Suthas Ruangmanamongkol, President of TISCO Bank Plc, said: "Today, it is not only retail clients and Chevrolet dealers that TISCO supports. We also have the opportunity to join the loan syndication facility to GM. We are proud to be a part of this facility agreement to support GM's bold step in its business expansion here in Thailand. This will help establish our country as a leading commercial vehicle production base in this region."
About GM
General Motors Company, one of the world's largest automakers, traces its roots back to 1908. With its global headquarters in Detroit, GM employs 204,000 people in every major region of the world and does business in some 140 countries. GM and its strategic partners produce cars and trucks in 34 countries, and sell and service these vehicles through the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, Opel, Vauxhall and Wuling. More information on the new General Motors Company can be found at www.gm.com.