The Export-Import Bank of Thailand (Exim Bank) is ready to take the lead in offering syndicated loans to Thai firms planning to invest overseas, says president Rak Vorrakitpokatorn.
He said more large Thai companies are investing overseas or taking over businesses in foreign markets, particularly in Western countries, at this time as the global economy slows and geopolitical conflicts rage.
"We stand ready to extend loans to Thai companies for overseas investment," Mr Rak said.
The bank has strong capital, tallying 27 billion baht, and can assume market leadership for syndicated loans to local companies wanting to invest between €200-300 million (7.42-11.1 billion baht) to take over businesses in Europe, he said.
The bank might offer loans at a proportion of 25-30% of their total investment, said Mr Rak.
Earlier the bank extended a loan worth US$120 million to Singha Estate Plc to develop an integrated resort project called Crossroads Maldives in the Maldives.
The bank also plans to introduce a "two-step loan" scheme worth 5 billion baht in the second quarter this year to provide loans to small and medium-sized enterprises, he said.
The initiative offers loans to major exporters with strong credit records, which in turn would lend such loans to small enterprises in their supply chains.
The method would enable small companies to access loans with a low interest rate, passed on by large borrowers from Exim Bank, said Mr Rak.
He said the project would not result in bad debt as major exporters would help prevent risk with regard to the loans.
Mr Rak said the export sector this year is expected to suffer a contraction, mainly attributed to the subdued global economy and the purchasing power among Thailand's trading partners, which has declined faster than previously expected.
However, the situation should not affect Exim Bank as 70% of its loan portfolio comprises loans for businesses to make overseas investments, with the remainder for trade, he said.
Mr Rak said he is confident the bank would post new loans tallying 20 billion baht this year and outstanding loans worth 175 billion baht.
The Commerce Ministry projected last month the country's export sector would gradually recover in the latter part of the year as inflationary pressures and global supply chain issues align with energy price trends.
However, global economic uncertainty and an inflationary environment would inevitably affect Thai exports in the first half of the year, according to the ministry.
The World Bank projects Thailand's goods exports to contract by 1.8% in US dollar terms this year, attributed to the global slowdown.
The Bank of Thailand cut its forecast for the value of exports this year to a contraction of 0.7% from growth of 1%.
