Infrastructure to drive BBL Yangon's syndicated loans

Infrastructure to drive BBL Yangon's syndicated loans

The Yangon branch of Bangkok Bank (BBL) is seeing opportunities to provide syndicated loans in Myanmar, thanks to the bank's large capital base and a batch of infrastructure developments there.

Several syndicated loan deals are in the pipeline to support customers investing in Myanmar, said Kanet Buranasin, who manages the Yangon branch. The bank will join with local and foreign institutions to extend syndicated loans.

BBL, Thailand's biggest lender by assets, was the only local bank awarded a foreign banking licence by Myanmar authorities last year. With registered capital of US$200 million -- higher than the regulator's minimum requirement of $75 million -- the Yangon branch has the biggest capital base in Myanmar's banking industry.

In collaboration with three other foreign banks, the Yangon branch has extended a term loan facility of up to $40.2 million to OCK Yangon, a subsidiary of Malaysian telecom tower builder OCK Group. The deal is the largest syndicated loan for Myanmar's onshore banks.

The other foreign lenders are Malaysia's OCBC Bank and Maybank, plus Singapore's United Overseas Bank.

Most project finance deals in the pipeline are for infrastructure investments. Loan demand for building and construction, textiles and the export sectors is also strong. Apart from project finance, the bank also supports short-term loans, working capital, trade finance, and letters of credit for every type of client.

Thais represent the bulk of the Yangon branch's customers, Mr Kanet said.

"For instance, the Yangon branch will offer syndicated loans for customers requesting funding worth 3-4 billion baht for a project," he said.

With greater opportunities, Mr Kanet said the Yangon branch is expected to achieve its lending target this year, but he refused to reveal the goal.

Some deals take more time to clear the legal process, he said.

The bank also provides financial support to small and medium-sized enterprises.

BBL shares closed yesterday on the Stock Exchange of Thailand at 166.50 baht, up 50 satang, in trade worth 655 million.

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