BBL to invest in 3-4 startups

Bangkok Bank (BBL), the country’s largest lender by assets, aims to put money into 3-4 local startups this year through both direct investment and venture capital models.

The bank plans to invest 50-200 million baht for each startup, said senior executive president Siridej Aungudomsin. BBL has the option to directly invest in these startups or through its venture capital company, Bualuang Ventures.

The bank has around 10 potential startup companies in the pipeline, with most engaged in agriculture, food, the ageing-related sector, and tourism operations, all using technology or innovations.

The percentage stake held by the bank in each startup depends on the investment model and the latter’s strategy.

Bank of Thailand regulations cap banks’ shareholding in a startup at 10% without a specific period for an exit, but limits the maximum investment period to 10 years for banks’ investing through venture capital companies without the restriction of shareholding.

The central bank extended the maximum investment period for banks through venture capital firms from seven years.

Bualuang Ventures has registered capital of 2 billion baht.

BBL has collaborated with Thammasat University to support Thai startups with the aim of developing their business capabilities and raising their business potential in a sustainable manner.

In related news, Mr Siridej said the bank maintains its target for small and mediumsize enterprise loan growth of 4-5% this year, though its SME loans grew marginally by 1-2% for the first eight months.

SME l oan demand is expected to improve in the fourth quarter, supported by seasonal factors.

The bank’s SME loan portfolio is around 500 billion baht.

Despite non-performing loans rising for SMEs in line with economic circumstances, soured loans have displayed better signs in large part thanks to BBL’s debt restructuring.

The bank has no policy to divest bad SME assets, he said without revealing the figure for its SME NPLs.

BBL shares closed yesterday on the Stock Exchange of Thailand at 189.50, down 2 baht, in trade worth 821 million baht.