A guide to cross-border financing in Thailand

Author: | Published: 8 Jul 2019

The market has evolved from catering solely for offshore lenders financing Thai borrowers to include Thai lenders financing foreign ventures. Nattaporn Pengkul and Passawan Navanithikul of Weerawong C&P look at the latest developments in lending rules

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In the past, most cross-border financings involving a Thai company involved an offshore lender providing financing to the parent of a Thai subsidiary. This typically requires security being provided by the Thai subsidiary. Recently however, several Thai commercial banks have been providing financing to subsidiaries of Thai companies established and operated abroad, for instance in Cambodia, Myanmar, Laos or Vietnam. Classic examples of this might include a project financing for a power plant in Myanmar or an acquisition financing for the acquisition of shares in Vietnam.

As to the development of the security interest regime in Thailand, the implementation of the Business Security Act BE 2558 (2015) (BSA) widened...