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Thailand’s High Yielding TFFIF Future Fund Maybe Open to Foreigners

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Thailand's High Yielding TFFIF Future Fund Maybe Open to Foreigners

Thailand’s Finance Ministry has reported that it may allow foreign investors to invest money into TFFIF Future Funds. A state-backed infrastructure fund, with strong interest returns for investors.

The TFFIF’s future funds return of 5-6% has caught foreigners’ attention because such returns are considered high in a low-interest-rate environment, said Finance Minister Uttama Savanayana.

The initial TFFIF public offering, raised funds worth 44.7 billion baht in October 2018. Above all it received an overwhelming response from the public. Prompting the government to consider issuance of a new batch of units.

Fund backed by future revenue

The future fund, which is listed on the Stock Exchange of Thailand, is backed by 45% of future revenue from; the Chalong Rat Expressway and the Burapha Withi Expressway; both are also owned by the Expressway Authority.

For foreign investment, the government infrastructure fund’s size must also be large enough, said Prapas Kong-Ied, director-general of the State Enterprise Policy Office.

The office is also considering which of the government’s infrastructure projects will be used as underlying assets for the second batch of TFFIF’s. Mr. Prapas said that brownfield projects are expected to be used to back the new fund.

Meanwhile, Mr Prapas estimated that more than 100 billion baht worth of state enterprises’ investment budget would be doled out from January-to-March.

Of the total, 45.8 billion baht is expected to be taken out by parent state enterprises. And also 65.1 billion baht by subsidiaries, he told the Bangkok Post.

Government ramping up state enterprise investment

In 2020, 45 state enterprises have a combined investment budget of 345 billion baht. Furthermore the government is ramping up state enterprise investment as the country’s economy falters. This fiscal year’s state budget spending was delayed for months. The state budget is regularly schedule on Oct 1, 2019.

State enterprises’ infrastructure mega-projects include the Sino-Thai high-speed railway; the Red Line electric train route; double-track rail; the Orange Line electric train’s eastern section linking Thailand Cultural Centre to Min Buri; Suvarnabhumi airport’s expansion; the Electricity Generating Authority of Thailand’s Bang Pakong power plant; and also the Provincial Electricity Authority’s transmission and distribution system development.

TFFIF units also closed yesterday on the SET at 12.30 baht, up 20 satang, in trade worth 30.6 million baht.

Source: The Bangkok Post

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