Thailand's KBank to lend $9.85M to Chinese car maker

The Kasikorn Group will lend Dongfeng Automobile more than US$9.85 million as the latter builds its presence in Thailand.

Dongfeng is anticipating the establishment of the Asean Economic Community.

The financing comes in two parts. Kasikornbank is loaning Dongfeng Automobile (Thailand) 106.82 million baht to build a factory with a production capacity of 5,000 units a year. Kasikorn Leasing will extend a 195-million-baht loan to the company to be used for captive financing.

Kasikornbank executive vice-president Patchara Samalapa said Thailand will become a regional manufacturing base for the company. After the AEC is introduced, Dongfeng will be able to take advantage of regional integration and export locally made cars to Laos, Cambodia, Myanmar and Malaysia.

Mr Patchara said that Kasikornbank is paying particular attention to China-related business and believes there is much potential in serving clients from China.

About 2,000 small and medium-sized Chinese companies are active in Thailand. Of these, 800 are Kasikornbank customers, and the bank has extended these clients' loans totalling 2.2 billion baht. Business with Chinese companies is expected to grow as trade increases between Thailand and China.