A cross-office team from Baker McKenzie recently advised the State Enterprise Policy Office, the Ministry of Finance (Thailand), and fund managers Krungthai Asset Management PCL and MFC Asset Management PCL on the establishment and initial public offering of the THB 45.7 billion (approximately USD 1.4 billion) investment units in Thailand Future Fund (TFFIF). The offering of units in the new fund, which began trading on the Stock Exchange of Thailand on 31 October, is the country's largest initial public offering since 2015.
The Baker McKenzie team was led by partners Professor Kitipong Urapeepatanapong, Komkrit Kietduriyakul and Theppachol Kosol from the Bangkok office, and principal Ashok Lalwani from Singapore member firm Baker McKenzie Wong & Leow. They were supported by lawyers from both offices including Kowit Adireksombat (partner, Bangkok), Kyle Pilkington (local principal, Singapore), Panlapa Chai-aya, Termpong Prongdong and Caryn Ng. The team had lead responsibility for advising the clients on the fund and offering structure, legal and regulatory issues, communication with the regulators, and general transaction management pertaining to Thai law and US securities law.
Commenting on the deal, Theppachol said, "We are very pleased to have assisted the clients on this landmark deal. The initial asset is the right to receive 45% of the toll revenue from two toll roads operated by the Expressway Authority of Thailand for a period of 30 years. The TFFIF deal is particularly novel, as it is the country's first fund-raising vehicle that enables public investors to invest in multiple public infrastructure assets operated by various state enterprises and government agencies in accordance with a new set of regulations issued specifically for this venture. This will surely pave the way for other state enterprises and government agencies to use TFFIF as the funding vehicle and use the proceeds to speed up their key infrastructure development projects."
He further added, "We are delighted that we have been able to draw on our legal capabilities and strengths in advising on complex issues involving securities, state enterprise and public finance law, to bring this deal to fruition for our clients."