Thailand’s Government Savings Bank (GSB), with support from the Stock Exchange of Thailand (SET), has officially launched two investment vehicles at 1.5 billion baht (more than $44 million) to invest in the country’s small and medium-sized enterprises (SMEs).
These are the sub-funds of the SMEs Private Equity Trust Fund that the state-owned bank proposed earlier in 2016.
DEALSTREETASIA exclusively reported in April this year that Singapore-based early stage venture capital firm Expara had been selected as manager for the Trust Fund’s first 500 million baht sub-fund.
Meanwhile, another 1 billion baht unit managed by a Thai firm called Premier Advisory Group Co, was introduced during an announcement ceremony recently, local media reported.
Krungthai Asset Management acts as trustee for both funds.
GSB had said it would continue to raise capital for the Trust Fund until it reached 2 billion baht to invest in startups and SMEs serving critical sectors.
The 500 million baht fund is already investing some 280 million baht into nine companies, some of which are drone manufacturers.
Douglas Abrams, managing director of Expara, had revealed the establishment of Expara Thailand to manage GSB’s first sub fund, which is expected to be active for 4-5 years.
The SMEs Private Equity Trust Fund, which will be 20 per cent supported by SET, might make a funding round of up to 100 million baht in exchange for a maximum 49 per cent equity stake in a startup.
Working in collaboration with SET, the Trust Fund expects to exit when the companies are listed on the bourse, or get to a mature stage when founders want to buy back their shares.
SET president Kesara Manchusree was quoted as saying that over 160 businesses had raised 99 billion baht from listing on the Market for Alternative Investment, an exchange for SMEs, according to Bangkok Post. Also, 23 companies have moved to SET’s main board.
Meanwhile, a visual effect producer funded by the GSB-led fund is already planning to list on SET, the news agency said.
DEALSTREETASIA Pte. Ltd. is a news and intelligence platform providing reports on investments, mergers, acquisitions, private equity, venture capital, investment banking and the business of startups across the Asian region.
12 Things to Know about the ASEAN Catalytic Green Finance Facility (ACGF)
The ACGF is an ASEAN Infrastructure Fund initiative managed by ADB’s Southeast Asia Department Innovation Hub. It helps Southeast Asian governments prepare and finance infrastructure projects promoting environmental sustainability and contributing to climate change goals.
Thai cabinet approves 350 billion baht Aid for COVID-hit Businesses
Thailand unveiled new measures to help small and medium COVID-hit businesses in the tourism industry hit by a liquidity crunch.
APAC Banks to Face Portfolio Valuation Losses As Yields Rise
The latest data suggest that Fitch-rated banks in Hong Kong, India, Indonesia, Malaysia and Taiwan have the largest AFS securities portfolios, and display particular sensitivity to changes in yields.
Fitch Ratings-Hong Kong/Singapore-21 March 2021: A rise in yields for long-dated sovereign bonds will result in near-term losses for Asia-Pacific (APAC) banks as they recognise valuation changes on their available-for-sale (AFS) bond portfolios, but the capital impact should be manageable for most rated banks, says Fitch Ratings.
Subscribe via Email
Thai fruit exports to FTA markets up 107 percent
China, Malaysia, Singapore, Indonesia, the Philippines, Hong Kong, Australia and Chile are top importers of Thai fruits, especially fresh durian,...
Digital Revolution and Repression in Myanmar and Thailand
Activists have also proactively published social media content in multiple languages using the hashtags #WhatsHappeningInMyanmar and #WhatsHappeningInThailand to boost coverage...
3 Reasons to Be Optimistic About the Baht Right Now
Probably one of the most important factors for the rise of the Baht is the continued weakness of the US...
Will Thailand’s plan for quarantine-free tourism set a global trend?
According to the Tourism Authority of Thailand, the quarantine-exemption measures implemented in Phuket will be extended to five other key...
Thailand Approves Latest Economic Relief Package for Businesses
Some 250 billion baht (US$8 billion) was allocated for soft loans while the remaining 100 billion baht (US$3.2 billion) will...
Southeast Asia remains a hot spot for plastic pollution
The use of plastics is deeply embedded in our daily lives, in everything from grocery bags and cutlery to water...