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Tsunami Fund Set to Prompt Investment

30 December, 2004

The Nation

The Federation of Thai Capital Market Organisations plans to raise Bt100 million by launching a joint-venture capital fund called the Tsunami Property Reconstruction Fund to invest in hotels and resorts in the six southern provinces slammed by Sunday’s terror waves.

The Association of Securities Companies also provided separate financial assistance as it hopes to muster Bt100 million in donations from 16 securities companies.

Matchima Kunchorn Na Ayuthaya, vice-president of the federation, said the joint-venture fund would be available next month.

He said Finance Minister Somkid Jatusripitak yesterday chaired an emergency meeting to help boost tourism and strengthen the fundamentals of companies that suffered in the tragedy.

The fund was aimed at helping small resorts and hotels in Phuket, Krabi, Phang Nga, Ranong, Satun and Trang provinces.

A working committee headed by Kongkiat Opaswongkarn, chief executive officer of Asia Plus Securities Plc, will handle all the details of the joint-venture fund.

“Around 1,000 businesses were affected by this hit, so we’ve decided to raise funds by using the policy of venture capital investment. The unit investment is expected to sell to domestic and institutional investors,” Matchima said.

After the recovery, the federation expects target companies like hotels and resorts to raise more capital for their further investment by listing in the Market for Alternation Investment (MAI).

Meanwhile, Suthep Peetakanont, chairman of the Association of Securities Companies, said the group would try to gather Bt100 million in donations to help the situation by mobilising funds from 16 securities firms.

“The representatives of all securities companies that attended this meeting will go back and discuss this with their board directors. The amount of donations depends on the size of each company. Large companies may have to contribute more than smaller ones,” said Suthep, who is also chairman of Capital Nomura Securities Plc.

The association expects to receive a reply from the securities firms by next month and the money should be ready to transfer by February 15.

Siriporn Chanjindamanee

The Nation: http://www.nationmultimedia.com/2004/12/30/business/index.php?news=business_15927148.html