Thailand’s Kasikornbank said on Saturday it plans to invest up to $40 million in a 35% stake in Myanmar’s Ayeyarwaddy Farmers Development Bank after receiving approval from Myanmar’s central bank.
Kasikornbank, the country’s No. 2 bank by market capitalisation, said in a statement the investment will be done through its unit Kasikorn Vision, which has a budget of 14 billion baht ($428 million) for overseas business opportunities.
Thai banks, grappling with sluggish economic growth in a crowded home market, have been keen to expand abroad.
On Friday, Siam Commercial Bank said it was looking to issue loans worth up to 7 billion baht over the next five years in Myanmar after receiving a preliminary approval to set up a subsidiary there.
Rival Bangkok Bank took a controlling stake in Indonesia’s PT Bank Permata for $2.7 billion in December last year.