The Finance Ministry has extended the life of the government's Vayupak Fund 1, which was due to expire in November 2013, by changing it to an open-ended fund with a one-year renewal.
In addition, asset size will be expanded by two-thirds to 500 billion baht, said permanent secretary Areepong Bhoocha-oom.
After a meeting of the panel set up by the ministry to amend the conditions of the Vayupak Fund 1, Mr Areepong said the nine-year, state-owned fund is viewed as an ongoing benefit that can be used as a tool of government to invest in infrastructure projects.
The new model is of an open-ended fund but with call options for investors to exercise their rights set at once a year only, without the annual yield guarantee of 3% offered by the closed-ended fund.
Mr Areepong said those ministry assets invested by Vayupak have given a return of at least 3% since inception.
Once the new fund model takes effect, these assets of the ministry will be transferred to the new fund in order to ensure a return of least 3% each year.
The performance of the fund since it was introduced has averaged a 6% return per year.
"The ministry will clarify the new fund's condition to existing unitholders in April," said Mr Areepong.
"The new fund will be allowed to invest in the infrastructure of the country, either through investment by the public and private sectors or through joint ventures involving both."
About the author
- Writer: Wichit Chantanusornsiri
Position: Business Reporter