Krungthai Bank Launches a Trust Fund for Thai SMEs Worth $65.5M

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Krungthai Bank (KTB) is launching a venture capital fund worth $65.7 million (THB 2.3 billion) in collaboration with the Stock Exchange of Thailand (SET) and the National Science and Technology Development Agency (NSTDA) to help small and medium-sized enterprises and startups expand their businesses.

The SME Private Equity Trust Fund will be managed by Krungthai Bank and One Asset Management Ltd. Out of the total investment,

  • $57.1 million (THB 2 billion) will come from Krungthai Bank
  • $5.7 million (THB 200 million) from the Stock Exchange
  • $2.8 million (THB 100 million) from NSTDA

It is expected to officially launch in the third quarter of 2016.

The trust fund plans to invest in three groups – high growth startups, technology-based SMEs and large-sized suppliers – that drive the country’s economic growth.  “We would like to make Thai companies healthier and help them to grow and eventually raise funding from the stock market,” says Kesara Manchusree, President of the Stock Exchange of Thailand. She estimated the fund could help around 100 SMEs and boost Thai economy eventually. 

Mr. Songpol Chevapanyaroj, senior vice-president in charge of the global transaction banking group at KTB, said that the venture fund will put in the money as a partner of the SMEs and invest between $572K- $4.3 million (THB 20-150 million) per business. The fund also aims to focus on SMEs that are in a strong position, those with a revenue of $11.4 – $17.2 million (THB 400-600 million) a year.

Apart from the financing, the fund will also provide the chosen companies financial advisory services, investment consultancy, and pre-listing management for those who plan to list on the stock market. In addition, NSTDA will provide other incentives such as tax exemption for research and development-based or technology-based businesses.

A version of this appeared in Deal Street Asia and Bangkok Post on July 25/26. Read the full version here and here.