Globally, Chinese companies have been stepping up their overseas investments in recent years. The increase in China's outbound direct investment (ODI) is driven by the central government's "Going Global" policy, which encourages domestic companies to invest overseas to boost their international competitiveness and utilize surplus domestic capacity. The pace of China's ODI is expected to accelerate, fueled by massive infrastructure investment in Asia and Europe under China's "One Belt, One Road" initiative.
Thailand, with its attractive investment climate driven by Board of Investment policies and a solid economic foundation, stands to benefit from this trend. In the past few years China's FDI into Thailand has grown at a phenomenal rate of 25% per year. We expect the investment momentum to accelerate exponentially in core clusters of i) high-tech industries such as solar panels, ii) renewable energy, iii) rubber products, and iv) infrastructure projects."
Taking note of this trend, SCB Chief Executive Officer and Deputy Chairman of the Executive Committee Mr. Arthid Nanthawithaya recently said, "SCB is committed to lead in promoting the investment climate in Thailand and supporting Chinese inbound investors. To date, SCB has extended close to THB15bn in financing to Chinese corporates and plan to double the amount in 3 years. Most recently, SCB and China Minsheng Bank have signed a financing facilities agreement with Trina Solar Science & Technology (Thailand) Ltd., providing syndicated loan of USD 100 million for the establishment of a manufacturing facility with capacity of 700MW for cell and 500MW for module as well as USD 43 million credit line for its working capital. The facility is located at Amata City Industrial Estate in Rayong and recently commenced production in March, 2016.
"Trina Solar Science & Technology (Thailand) Ltd. is a subsidiary of Trina Solar Limited, world's number 1 solar panel manufacturer and a NYSE listed company with a market capitalization of approximately US$1bn. We want to express our warmest congratulation to Mr. Jifan Gao, Chairman and CEO of Trina Solar for the opening of its Thailand facility. We are honored the company has entrusted SCB as its main financial partner in Thailand. I am confident this project will help boost the country's economy and generate jobs. It is a facility that will enhance clean energy around the world for generations to come. This is also in line with the Thai government's policy and the bank's strategy of promoting alternative energy. SCB is proud to play a role in supporting the renewal energy industry and promoting investment in Thailand" added Mr. Arthid.
"We are pleased to announce the official launch of our new facility in Thailand as scheduled." said Mr. Jifan Gao, Chairman and CEO of Trina Solar. "The $143 million in financing agreements in support of our Thai operations is a great vote of confidence from both SCB and CMBC in our brand and our overseas expansion strategy. We look forward to cooperating further with these two first tier banks in our other strategic initiatives as we are confident in their financial services and knowledgeable teams with good understanding of the solar energy business."
Mr. Gao continued, "This and other major Trina Solar's projects in the pan-Asia region also align the Company with the Chinese government's key strategic initiative, 'One Belt, One Road,' connecting Asian economies for their mutual benefit. We are also pleased to help further advance the development of clean energy in more countries around the world."