EXIM Thailand signed a purchase and sales agreement for its NPL portfolio totaling 8.2 billion baht with Sukhumvit Asset Management, cutting down its NPLs to 4.50% of total loans and accrued interest receivables. As a result, the Bank expects to achieve its net profit goal of 480 million baht for 2007. Dr. Apichai Boontherawara (left), President of Export-Import Bank of Thailand (EXIM Thailand) and Mrs. Nampung Wongsmith (right), President of Sukhumvit Asset Management Company Limited (SAM), entered into the purchase and sales agreement for the Bank’s NPL portfolio in the outstanding principal amount of 8.2 billion baht at EXIM Thailand Head Office on December 12, 2007.According to EXIM Thailand President, the portfolio sale is a result of the successful bid by SAM which offered the highest price for the Bank’s NPL accounts. The bidding process which took place at the end of October 2007 was administered by EXIM Thailand in cooperation with Baker Tilly Corporate Advisory Services (Thailand) Limited, the Bank’s transaction financial advisor and Hunton & Williams (Thailand) Limited, legal advisor in the disposal process of the Bank’s NPL Portfolio. After the NPL portfolio was divested, the Bank’s remaining NPLs, including new entries and those to be restructured by the Bank, totaled 2.27 billion baht.
“The sales of NPL portfolio resulted in a dramatic decrease in the Bank’s NPLs from 15.93% to 4.50% of its total loans and accrued interest receivables which is very satisfactory compared with the NPL reduction target of 10% set out for this year,” revealed Dr. Apichai.
Dr. Apichai also added that in the first 10 months of 2007, EXIM Thailand was able to restructure its NPLs in the amount of 724 million baht. The success of the Bank’s NPL restructuring and disposal process would enable the Bank to reach its net profit target of 480 million baht by 2007-end. The 10-month net profit alone stood at 382 million baht.
With regard to SAM, Mrs. Nampung said that in 2007 SAM was able to reach its target of financial institutions’ NPL portfolio purchase of 20 billion baht. SAM’s successful bids included those offered by Siam Commercial Bank Public Company Limited (twice), Chatuchak Assets Management Company Limited, Thanapat Credit Foncier Company Limited, TMB Bank Public Company Limited and EXIM Thailand with the total outstanding principal balance of approximately 19.3 billion baht. SAM also plans to engage in the NPL auction of another two financial institutions, namely Siam City Bank Public Company Limited and Bank of Ayudhya Public Company Limited. At present, 98% of the target set for distressed asset restructuring has been achieved.