Thai govt woos Omanis to invest in Thailand Future Fund’s IPO

The Thai government has made an effort to attract Omani investors for the Thailand Future Fund (TFF), which is expected to raise 100 billion baht ($2.8 billion) from an initial public offering (IPO) in the second quarter.

Deputy Prime Minister Somkid Jatusripitak met the chairman of the Oman Chamber of Commerce and Industry, Saeed Saleh Saeed Al Klyumi, on Monday to discuss the possible investments.

Jatusripitak told local media that Omanis have been seeking good opportunities to diversify their investment after the oil prices dropped.

“They own the largest sovereign wealth fund, which has the policy to invest in the infrastructure projects as same as the TFF does,” he said.

The cabinet approved the launch of the TFF in December last year and the Finance Ministry has recently submitted an IPO filing for the TFF to the Securities and Exchange Commission.

The proceeds from the sales of TFF’s units will be used to fund the construction of the government’s infrastructural projects.

The underlying assets for the TFF will comprise two brownfield projects – the N7 motorway and the N9 motorway – and one greenfield, which is the Rama 3-Dao Khanong Expressway.

Finance Minister Apisak Tantivorawong previously said that the TFF should give a return rate of 7-8 per cent, which is quite attractive for investors.

The Thai government has 20 large infrastructure projects in pipeline, requiring total investment of 1.7 trillion baht. Around 60 per cent of total investment will come from borrowing, 20 per cent from the public-private partnership scheme, 10 per cent from the government’s budget expenditure and around 2 per cent from the TFF.

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