Thai Capital Market Showcases Potential As GMS Fundraising Center
Stocks and Financial Services Press Releases Monday December 15, 2014 16:15
Finance Minister Sommai Phasee, together with government and private sectors as well as the Thai capital market, recently announced the success of the baht-denominated 6.5-billion bonds issued by EDL-Generation Public Company (EDL-Gen), Laos’ biggest power producer, getting almost two times oversubscribed. This is regarded as a good start for the Thai capital market as a fundraising center in the Greater Mekong Subregion (GMS).
Finance Minister Sommai Phasee said that the Thai government has aimed Thailand as a regional leading fixed-income facilitator and GMS’s investment and fundraising center. The success of EDL-Gen’s baht-denominated bond issuance would be a good model to attract other government and private sectors in GMS countries to raise funds in Thailand in the future, as well as able to support inclusive growth in the region.
EDL-Gen Chief Executive Boun-Oum Syvanpheng said the fundraising would increase the company’s efficiency to accommodate the increasing demand of power energy and support the power exports into neighboring countries such as Vietnam, Cambodia and Thailand. After this success, the company might consider to raise funds via SET’s various investment types soon.
Vorapol Socatiyanurak, secretary-general of The Securities and Exchange Commission (SEC) said that the baht-denominated bond issuance by a foreign firm underlined the success of the SEC’s strategy to encourage the Thai capital market as the central capital market connection in the region. SEC aimed at facilitating government and private sectors in GMS to raise fund and list their securities in the Thai capital market more conveniently, as well as launching Thailand’s fundraising tools, such as enabling mutual funds and trust to invest in GMS countries. This would pave ways for regional economic development to progress more quickly.
SET President Kesara Manchusree said that SET has been committed to becoming GMS Connector by providing a full range of fundraising and investment services in the whole region. As such, the exchange has continuously developed and enhanced the neighboring countries so as to grow together in terms of economy, trade, investment and capability of people living in the region. SET was confident that this success would be an important start to encourage other GMS countries to realize the benefit of raising funds via the Thai capital market. Simultaneously, it would boost opportunity to create business linkage and alliances amongst each other in the region.
Adisorn Singhsacha, managing director of Twin Pine Consulting Co., Ltd., EDL-Gen’s financial advisor, said that the Thai baht bond issue was really successful in getting 1.9 times oversubscribed. This reflected that Thai investors needed various and international investment products. Moreover, there was a tendency that a great number of businesses in GMS countries were keen to raise funds via the Thai capital market in the near future. Therefore Twin Pine intends to advise more government and private sectors to raise funds in Thai capital market. SET Group: “Matching Your Right Financial Opportunities”
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