TMB reveals details of its liquidity support scheme, covering all mutual fund investors after TMBAM Eastspring closed its 4 funds.

Stocks and Financial Services Press Releases Tuesday March 31, 2020 12:02
Bangkok--31 Mar--Chomchaviwan

TMB Bank Public Company Limited or TMB revealed that Eastspring Investment (Singapore), an anchor partner of TMBAM Eastspring, has sent its specialists to support TMBAM Eastspring right after the asset management announced the closures of its 4 funds, expecting to make a repayment to all unit holders every 2 weeks. TMB is also willing to support by offering low interest rate-lending for short-term liquidity to all unit holders in these 4 funds.

Mr.Piti Tantakasem, Chief Executive Officer of TMB mentioned “After TMBAM Eastspring announced its 4 fund closure, Eastspring Investment (Singapore) as an anchor partner, has brought in specialists to collaborate with TMBAM Eastspring’s fund managers on the liquidation process in order to distribute the proceeds to all unit holders. TMBAM Eastspring has expected that they could gradually repay money to all customers of these 4 funds, starting from this week in the proportion up to 10% and then repay on bi-weekly basis. It is expected that within 1 month, unit holders would receive the proceeds up to 20% of the cash flow received of each fund from held-to-maturity securities. The fund would also explore other options to increase the flexibility of liquidation process for customers’ benefit and targets to return all amount or as much as possible within 3 months, depending on market conditions. The fund also sees that the downward pressure over the asset price and net asset value has reduced significantly after the fund closure.”

For TMB, as a 35% stakeholder in TMBAM Eastspring and one of the fund’s distribution agents, is willing to support in case the repayment process of TMBAM Eastspring may not match with short-term funding needs of some unit holders. Hence, TMB releases the relief scheme which offers special leading rate for all unit holders of those 4 funds, available for both retail investors and commercial investors. It does not matter if investors are TMB existing customers or not, all investors could apply for this program.

In terms of retail customers, they could request for loans with the credit line of THB 5 million at maximum, with special interest rate of 0.17% monthly for credit line up to THB 1 million and 0.25% per month for credit line above THB 1 million to THB 5 million. For commercial customers, the Bank arranges the credit line at THB 50 million at maximum and offers 0.17% interest rate per month for the loans up to THB 1 million, 0.25% per month for loans above THB 1 million and up to THB 5 million and 0.33% a month for the credit line above THB 5 million to THB 50 million. The Bank would determin the credit line from the remaining value of customer’s investment units (value of investment units on the closure date, net by the repayment proceeds customer receives) and then take into account Loan-to-Value ratio based on the Bank’s policy.

Mr.Piti Tantakasem concluded “TMB is ready to support the BOT’s liquidity measures to increase stability in financial markets. We also quickly reached out to customers to understand their needs. Based on the information available, we are convinced that this relief program would be sufficient for customer needs, especially retail customers. It is our intention to take care all of our customers in every segment during the Covid-19 pandemic.”

To apply for the loan program, the investors could use the investment units in TMBUSB, TMBABF, TMBTHANAPLUS and TMBBF, as collaterals. The bond portfolios are considered quality collaterals as they invest in good-investment-grade securities. Also, we would like to emphasize that TMB is willing to support all investors of those 4 funds. Customers who bought the investment unit with TMBAM Eastspring directly, customers who bought investment unit through TMB or other distribution agents, all can apply for the loan program by contacting your distribution agents or TMBAM Eastspring directly (Call 1725).

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