Group Lease hangs out shingle in Cyprus launch

SET-listed Group Lease Plc (GL) has set up an investment and financial services company in Cyprus to spearhead its expansion into Eastern Europe, Africa and Latin America.

GL has selected Cyprus to be its springboard for global expansion as the country offers tax benefits as it is a member of the European Union.

“Cyprus offers favourable taxation, legal and financial incentives for investors such as GL to use as a centre to raise funds and expand globally,” said chairman and chief executive Mitsuji Konoshita.

“This country will help us accelerate expansion into Eastern Europe and Africa in finance, leasing and microfinance services businesses.”

GL reported profit of 1.06 billion baht in 2016, an increase of 82% from the year before.

Apart from the prominent profit growth, it also has a low debt-to-equity ratio reflecting its high capability to sustain its expansion plan.

The company is emphasising expansion in Latin America now.

Previously it expanded to African and Eastern European countries.

Mr Konoshita disclosed GL recently received a US$30-million credit line from one of the biggest banks in Brazil, which can be used to support mergers and acquisitions or for other financial services in the country or the region when opportunities arise.

For Asia the company has continued to use Thailand as a base to operate its business in six other countries: Singapore, Cambodia, Laos, Myanmar, Indonesia and Sri Lanka.

He said GL has extended short-term investments and advisory services in Cyprus over the past two years on a trial basis before finally deciding to set up a new company there.

“We are now sure Cyprus is the best place to provide financial and investment services, and even to raise funds globally to support our operations,” said Mr Konoshita.

Cyprus is among the world’s most popular tax havens for the extension of investments and financial services into Eastern Europe and Africa.

He said the Cyprus company will be set up shortly with an initial capitalisation of about $2-3 million.

GL shares closed yesterday on the Stock Exchange of Thailand at 59 baht, up two baht, in trade worth 306 million baht.