Kasikornbank (KBank) is collaborating with Tokyo-based Aozora Bank in matching the latter's Japanese clients with Thais seeking partners for expanding business in Asean.
"We've been working for more than a year to fine-tune this agreement," KBank president Predee Daochai said after yesterday's signing ceremony in Bangkok.
He said Aozora specialised in merger and acquisition (M&A) deals, and with the Asean Economic Community slated to kick off late next year, the Japanese bank sees an opportunity to bring its Japanese investors...
Aozora has 1.3 trillion baht in assets and 20 domestic branches. It also has representative offices in New York, Shanghai and Singapore and a subsidiary in Hong Kong.
KBank is Thailand's fourth-largest bank by asset size, with the largest small and medium-sized entrepreneur (SME) loan portfolio.
SME lending contributes the largest portion of its outstanding loans — 55 billion baht or 41% of the total.
With specialities in M&As and SME business, the partnership will strengthen competitiveness in conducting business in Asean, said Mr Predee.
"We have one potential M&A deal nearly done, with more in the pipeline," he said.
Most of the anticipated deals will be in manufacturing, industry and the food and hospitality sectors, said Mr Predee.
He said some Japanese investors sought Thai investment partners or M&A deals with Thai companies because Thai firms had better insights into domestic and regional markets.
The Japanese Chamber of Commerce lists more than 7,000 Japanese companies in Thailand, almost half of them SMEs.
KBANK shares closed yesterday on the SET at 247 baht, down two baht, in trade worth 642 million.