Bad bank plans stock listing in Thailand

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Property auctions on BAM’s website

A Thai government-owned restructuring fund of non-performing assets is preparing for a $300 million IPO at the Stock Exchange of Thailand, in a first such move of a so-called “bad bank” in Asia.

Bangkok Commercial Asset Management (BAM) has started contacting local banks in December 2012 to become shareholders in the fund which has the unusual business model of allowing banks to offload non-performing assets regularly. The IPO could take place in the fourth quarter of 2013.

BAM was launched in 2008 after the Asian financial crisis as a tool  for managing distressed assets of banks and companies and is currently 100 per cent owned by the Financial Institution Development Fund of the Thai government. The two main businesses of BAM are debt restructuring and sales auctions of foreclosed properties or its valorisation through renovation, development and lease.

BAM’s total assets under management currently amount to $12.4 billion, according to the fund’s financial statement, of which $11.1 billion are non-performing loans. BAM president Krit Sesavej told local media that the fund was on target to record a net profit of $106 million for 2012.

BAM is not the only non-performing asset manager in Thailand. Thailand Asset Management Corp and Sukhumvit Asset Management, the latter with about $16.3 billion under management, perform similar roles.

Other large restructuring funds in Asia are China’s Cinda Asset Management Corp. which is considering an IPO in Hong Kong next year in a multi-billion offering, or Korea Asset Management Corp, a debt restructuring institution in South Korea.

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Reading Time: 1 minute

Property auctions on BAM’s website

A Thai government-owned restructuring fund of non-performing assets is preparing for a $300 million IPO at the Stock Exchange of Thailand, in a first such move of a so-called “bad bank” in Asia.

Reading Time: 1 minute

Property auctions on BAM’s website

A Thai government-owned restructuring fund of non-performing assets is preparing for a $300 million IPO at the Stock Exchange of Thailand, in a first such move of a so-called “bad bank” in Asia.

Bangkok Commercial Asset Management (BAM) has started contacting local banks in December 2012 to become shareholders in the fund which has the unusual business model of allowing banks to offload non-performing assets regularly. The IPO could take place in the fourth quarter of 2013.

BAM was launched in 2008 after the Asian financial crisis as a tool  for managing distressed assets of banks and companies and is currently 100 per cent owned by the Financial Institution Development Fund of the Thai government. The two main businesses of BAM are debt restructuring and sales auctions of foreclosed properties or its valorisation through renovation, development and lease.

BAM’s total assets under management currently amount to $12.4 billion, according to the fund’s financial statement, of which $11.1 billion are non-performing loans. BAM president Krit Sesavej told local media that the fund was on target to record a net profit of $106 million for 2012.

BAM is not the only non-performing asset manager in Thailand. Thailand Asset Management Corp and Sukhumvit Asset Management, the latter with about $16.3 billion under management, perform similar roles.

Other large restructuring funds in Asia are China’s Cinda Asset Management Corp. which is considering an IPO in Hong Kong next year in a multi-billion offering, or Korea Asset Management Corp, a debt restructuring institution in South Korea.

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