SCB, CP Group form venture fund seeking $800m

SCB, CP Group form venture fund seeking $800m

The country’s third-largest lender Siam Commercial Bank Plc has set up a venture capital fund with top agro-industrial conglomerate, Charoen Pokphand Group, SCB said on Wednesday, as it announces major restructuring.

The companies will co-manage the fund and each contribute $100 million, SCB chief executive Arthid Nanthawithaya told a virtual briefing.

The fund will raise money from outside investors with a target of $600 to $800 million, he said, adding that it will invest in digital assets and emerging technologies.

"Blockchain technology will change the face of multiple industries ... we are in the early days of the promising technology and its impact to various sectors," said CP Group chairman, Soopakij Chearavanont.

The announcement comes a day after SCB formed a joint venture with Thailand's top mobile operator, Advanced Info Service Plc in an online lending platform.

The lender will also reorganise and form a new company, SCBX, which will be the "mothership", Mr Arthid said.

SCBX will swap shares with SCB and then later be traded on the stock exchange pending shareholder approval, he added.

The new entity will give it more flexibility in new growth areas in technology and markets like Indonesia, Vietnam and the Philippines, targeting 200 million customers by 2025, he added.

The bank's credit card, auto and data businesses will become individual companies with a view to listings in the next 3-5 years.

Do you like the content of this article?

Philippines protests China’s ‘provocative acts’ in disputed sea

The Philippines has protested “provocative” actions by Chinese government vessels in the South China Sea, in yet another sign of continuing tensions between the two nations in the disputed waters.

20 Oct 2021

Thailand Post tests parcel delivery by drone

Thailand Post tested drone delivery for the first time on Wednesday with a plan to start delivering medicines to patients difficult to reach by regular mail carriers.

20 Oct 2021

Myanmar's economic woes due to gross mismanagement since coup - US official

SINGAPORE: Myanmar's economic turmoil is due to political instability and mismanagement following a February coup, a US official said on Wednesday after a junta minister blamed the crisis partly on foreign backers of its opponents.

20 Oct 2021