CORPORATE SAVING AS AA&P FINANCIAL STRATEGY FOR THE FUTURE OF THAI ECONOMIC

CORPORATE SAVING AS AA&P FINANCIAL STRATEGY FOR THE FUTURE OF THAI ECONOMIC
16 March 2022

We would like to change the future of the capital market and change the behavior of Thai people from “Banking Saving” to “Corporate Saving”

– Pornbhuda Rijiravanich

In 2021, 15.0 trillion baht of Thai citizens are passively saved in Bank Accounts, leaving them with saving interest at 0.50% (according to Bank of Thailand). While the average national GDP is ~3% over decade, the saving interest rate at 0.50% signifies how investors have been gained less than they should have got, plus how a glut of unproductive bank saving is deteriorating Thailand economic growth.

For example, with an interest of 0.50%, you only get 1,005 baht from saving 1,000 baht in bank account for 1 year, instead of 1,030 baht as the GDP at 3% suggests. In terms of economic growth, excessive saving become more the hindrance than the driving force to productivity, competition and development. Not only that saving offers less yield to investors but it also freezes the potential fund flow articulated in the private sector.

In 2022, AA&P aims to actualize “Corporate Saving Strategy” by creating a fund flow from saving accounts to hundreds of listed companies in Thailand and become the first “Virtual Public Banking” in the world. To achieve our main goal, we introduce investors and the capital market as a whole the structure of “Convertible Bond” and utilize this financial tool as our stepping stone. In 2021, we pioneered in Convertible Bond issuance for Villa Kunalai Public Company Limited (“KUN”) and TWZ Corporation Public Company Limited (“TWZ”) as the precedent case for Thai capital market; more than 300 million baht raised in the second half of the year.

In 2022, we aim to build more than 1,500-million-baht portfolio in Convertible Bond issuance. Thus, AA&P continues to expand our strategic partnership and encourages the issuance of convertible bond for medium-sized public companies who seek fund for their business. Driven by convertible bond as our key instrument, we commit to build up the long-lasting and sustainable partnership with our clients.

Together for driving Thailand GDP. Together for success!

“AA&P SUCCESS STORY” Click

GET YOUR INSIGHTS