Project finance in Thailand: A boast in economic progression of Asia viola-funding August 5, 2023

Project finance in Thailand: A boast in economic progression of Asia

Thailand remain a small country of Asia with plenty investment opportunities. Thailand has undergone a dizzying transformation over the past half century from a backward agrarian economy to one of the most advanced countries in Southeast Asia. With an economically active population of just over 10 million, Thailand GDP exceeds $ 350 billion and continues to show strong growth. By relying on new technologies and advanced financial instruments, this country reduces its dependence on oil resources, conquers new markets day after day and looks confidently into the future. By relying on new technologies and advanced financial instruments, this country reduces its dependence on oil resources, conquers new markets day after day and looks confidently into the future. Project finance in Thailand plays an extremely important role in the transformation of her economy.

Viola Funding Limited provides project finance in Thailand and other Asian countries, offering long-term loans in energy other industries.

Our company provides project finance services in Thailand and other countries of Southeast Asia, offering professional advice from experienced financiers, lawyers and project managers, as well as comprehensive support for your projects.

Historical overview of Project finance in Thailand

One of the striking examples is the unique Pengerang Refining and Petrochemical Integrated Refinery, which has a value of $ 21 billion. Much attention is paid by Thai  business and the government to the development of infrastructure in Borneo and other regions of the tropical country, for which project finance based on public-private partnerships is intensively used. The oil and gas sector also plays an important role in Thailand economy, and local companies are investing heavily in oil production and the expansion of the local oil refining complex.

Firstly, Thailand, Malaysia, Indonesia, China and other countries of the Asian region have occupied more than half of the global project finance market in just 20 years, from the 1990s to the early 2010s.

Project finance in Asia has experienced several fluctuations, including due to the changing role of private investors in the energy sector. Despite all the difficulties, we see a number of large infrastructure projects in Southeast Asia in the first half of the 1990s.

Over the past 30 years, project finance in Thailand has become a trend, contributing to the dynamic development of the local economy and the expansion of the presence of foreign companies. In general, the international character of project finance began to appear on the Asian market, which was accompanied by the implementation of numerous international pilot projects in energy, infrastructure and other areas.

The development of project finance in Thailand and Southeast Asian countries has become a catalyst for the growth of the market for innovations in energy, IT and public infrastructure. The last stage in the development of PF in the region is distinguished by the transition to advanced capital-intensive projects of an innovative nature. These can be innovative infrastructure, industrial facilities, solar power plants or projects related to alternative energy.

The role of project financing in ASEAN economy

Project finance is an innovative way of organizing the financing of an investment project, requiring the initiators to create a new legally separate company (SPV, SPE) for the implementation of this project.

Project finance is one of the priority instruments for stimulating the country’s economic growth, which provides favorable conditions for raising funds for Thailand companies with insufficient creditworthiness.

The latter feature makes it possible to classify PF as one of the most risky forms of financing from the point of view of lenders. This requires a thorough analysis of the project and the development of an effective system of contractual relations, adapted to the risks and needs of the specific project.

Benefits of business and project finance in Thailand

In the past decades, the Thailand economy has been forced to seek sources of borrowed funds, technology and skilled professionals abroad. For a long time, the country did not have either sufficient resources or personnel.

To modernize the agricultural business/economy and take a quantum leap into the future, the government and local companies have successfully used various models of project finance and attracted large foreign contractors to implement high-tech and expensive projects under the EPC contract.

Separating a specific investment project from the main business and transferring part of the risks to the lender (no recourse) provides a relatively high level of financial leverage.

The main disadvantages of the PF for the lender are:

• Limited recourse to the owners of the project company.
• The need for a thorough assessment of the project and control over its implementation, including highly professional risk management.

Investments and bank loans; our financial service in Thailand

For more than decades, our company has been introducing advanced financial instruments, offering profitable solutions at any stage of projects. Based on years of experience and professionalism, our project finance services in Thailand will help you successfully implement the most complex projects in the oil and gas sector, energy sector and other industries.

Viola Funding Limited specializes in the implementation of capital-intensive investment loans for business and projects, actively supporting private customers and governments all the way from the idea to the launch of the facility and its operation.

Viola Funding offers project finance for solar power plants, wind farms, refineries, mines and other facilities in many countries around the world.

We offer investment engineering, financial modeling, integrated investment project management, financial consulting, construction and a whole range of other services required for a turnkey project. Our list of valued partners includes wealthy and high-net-worth angel investors, engineering companies, equipment manufacturers and research institutes.

If you are planning an investment project in Thailand, contact us at any time.

We are confident that we will find an attractive solution tailored to your business needs.

eMAIL:[email protected]
Website:https://viola-funding.com/

 

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