TMB signed a memorandum of understanding (MoU) to upgrade its procedures for considering and approving loans to the newest standards used globally, according to a press release yesterday.

TMB expects the use of artificial intelligence (AI) will shorten response time by over 50 per cent, enabling the bank to provide a better experience, higher efficiency and stronger growth for its corporate customers.

BAHT BONDS 

Lao power producer discloses coupon rates 

EDL-Generation Public Company (EDL-GEN), a major electricity producer in Laos, has announced coupon rates for its upcoming baht-denominated bonds offerings of up to Bt17.500 billion.

The six-tranche issuance, rated BBB+/Negative Outlook by TRIS Rating (Thailand) have maturities of 3, 5, 7, 10, 12 and 15 years and rates of 3.90 per cent , 4.50 per cent, 4.85 per cent, 5.50 per cent, 6 per cent, and 6.25 per annum, respectively. The bonds are to be offered to institutional and high net worth investors and are available through Bangkok Bank, Krungthai Bank, Siam Commercial Bank, Standard Chartered Bank (Thai) and Thanachart Bank. The subscription period is set for 10 to 12 July 2018, with the issue date on 13 July 2018.

As Lao PDR’s major renewable power generating firm, specialising in hydropower energy, EDL-GEN produces electricity both for domestic consumption and export to neighboring countries such as Thailand. The company owns 15 hydropower plants and one solar farm, giving a combined production capacity of 1,137 MW. Of the total 1,137 MW capacity, 619 MW is attributable to its 10 wholly-owned hydropower plants and the remaining 518 MW comes from its shares in five hydropower projects and one solar farm.

The company is currently pursuing the acquisition of shares in Xayaburi Hydropower Project and Donsahong Hydropower Project from Electricit du Laos and plans to use funds obtained from this offering to complete the transaction. The purchase will add a combined 309 MW to EDL-GEN’s generation capacity and highlights its goal to become a premier power generation company in the region.

This upcoming issuance marks EDL-GEN’s third bond offering in Thailand. The company intends to broaden its investor base, namely to increase participation from High Net Worth investors. Furthermore, the offering showcases EDL-GEN’s strong credit positioning and the depth, breadth, and liquidity of Thailand’s debt capital markets in this increasingly integrated regional capital markets.

Twin Pine Group Company Limited is the sole advisor for the transaction and Bangkok Bank Public Company Limited, Krungthai Bank Public Company Limited, The Siam Commercial Bank Public Company Limited, Standard Chartered Bank (Thai) Public Company Limited, and Thanachart Bank Public Company Limited are the Joint Lead Arrangers for this issuance.

4-CITY EVENT 

DEPA to host digital Thailand seminars

Digital Economy Promotion Agency (DEPA) will host “Digital Thailand Big Bang Regional 2018” from July to August 2018 in Khon Kaen, Chiang Mai, Rayong and Songkhla provinces, aiming to create awareness among over 100,000 people in the region.

Last year DEPA hosted “Digital Thailand Big Bang” as the starting point for preparing Thais to enter the digital world, create awareness and realise the benefits of bringing digital to the economy and society. The event welcomed more than 200,000 participants from over 40 countries around the world.

This year DEPA will also host the seminar and exhibition “Digital Thailand Big Bang 2018”, which is scheduled to be held in two parts. The first is Digital Thailand Big Bang 2018 from September 19 to 23 at Impact Exhibition and Convention Center.

The second is Digital Thailand Big Bang Regional in 4 regions under the concept of Digital Transformation Thailand. It will be held in four major provinces: 6-8 July 2018 at Central Plaza Khon Kaen, Khon Kaen; 20-22 July 2018 at Central Plaza Chiang Mai Airport, Chiang Mai; August 17-19, 2018 at Central Plaza Rayong and 24-26 August 2018 at Central Festival, Hat Yai, Songkhla.

All four cities are selected as the potential or pilot cities of the governmet’s Smart City plan.

JOINT PRODUCT 

Krungsri, AIA launch unit-linked insurance 

Krungsri (Bank of Ayudhya Plc) has teamed up with AIA to launch ‘Krungsri Unit Linked’ insurance, providing life coverage and investment benefits with a single premium payment plan.

Customers will get life coverage of 150 per cent of a single premium paid and an opportunity to gain higher investment returns by investing in quality mutual funds, highly flexible with an automatic fund re-balancing programme to maintain any desired investment targets free of charge.

The single-premium insurance requires a minimum premium of Bt500,000, of which returns will be maximised by investing in quality mutual funds at home and abroad. While policyholders can customise their own investment proportion, AIA Thailand’s automatic fund re-balancing programme will automatically adjust the investment portfolio upon changing market conditions toward customers’ initial investment targets.

The Krungsri Unit Linked hybrid insurance product offers a long-term protection up to the age of 99 or until investment unit redemption. It is also possible to make additional investments in the form of top-up premiums ranging from Bt10,000 to Bt120 million per annum. The hybrid product also allows a partial redemption of investment units which can be done after the first five years of each contract free of charge.

Haier sees boom in sales 

Haier Electrical Appliances (Thailand), distributor of Haier products, expects to achieve Bt4 billion in revenue this year, an increase of 48 per cent, after posting Bt2 bn in sales in the first half. Zhang Zhenghui, President of Haier Electrical Appliances (Thailand), revealed that during the first half of this year, Haier sales increased by 20 per cent or Bt300 million from the same period last year.

In the second half of this year, flagship models of refrigerators and washing machines will be launched.

“Our sales target for this year is Bt4,000 million and we are confident of achieving that goal. Refrigerators, washing machines and air-conditioners have plenty of rooms to grow in this market,” Zhang Zhenghui said.

The postal operator has joined with Research University Network (RUN) to examine ways to improve its business processes and services in a later stage of the plan.

Samorn Terdthampibopn, president of Thailand Post, said the company is continuing to provide new services to boost growth and serve the market. It plans to announce a cash-on-delivery (CoD) service in August, providing more convenience for e-commerce businesses.

She said that a memorandum of understanding (MoU) signed with RUN would see research and development carried out in order to improve organisational processes and the business as a whole. The arrangement would also help to raise the company’s business efficiency, reduce the cost of investment in the long term and create a long-term sustainable business, Samorn said.

Mongkol Techakuumphu, director of RUN, said that the three-year collaboration with Thailand Post would cover R&D into a prototype and system related-organisational improvement, human resources and a border logistic systems, as well as opportunities in the Eastern Economic Corridor (EEC) and in e-commerce. Mongkol said the prototype would support the demands of Thailand Post and help it expand into new services.

Samorn said that the five-year, Bt10 billion investment plan would see the company lay down infrastructure such as that for fully automated services for sorting management and improved process management, along with improvements in its services and productivity.

Samorn said the company expected to achieve revenue of more than Bt30 billion for this year, marking growth of more than 10 per cent from last year.

The parcel would business would account for 47 per cent of this share, followed by mail services with 32 per cent and international parcel and international mail services at 10 per cent. The rest would come from other business lines.

    “This is apart to increase our cash flow for business expansion in long term,” he said.