Small fry get first go at TFF

The initial subscription in investment units for the first batch of the Thailand Future Fund (TFF) will be based on the “small lots first” concept of the Securities and Exchange Commission, says the State Enterprise Policy Office (Sepo).

Those subscribing to investment units at a small amount will be entitled to subscribe first, a move aimed at supporting retail investor subscription, said Charnwit Nakburi, deputy director-general of Sepo.

The Expressway Authority of Thailand (Exat) will submit its filing this month and the share price is expected to be announced in September, at which time the investment units will be open for subscription by the public, Mr Charnwit said.

Retail i nvestors, however, are not expected to pour much money into the TFF, he said.

The definition of a retail investor could depend on whether such investors fall under the individual investor category or whether they are civil servants working for the Government Pension Fund and invest in mutual fund units through the GPF, Mr Charnwit said.

The TFF is envisioned as a government instrument to finance big-ticket infrastructure projects. Others methods of financing include annual budget spending, borrowing and public-private partnership.

Tollways are the initial underlying assets of the TFF, while the government is targeting other projects, including those in energy, to further mobilise funds.

For the TFF’s first investment batch, the fund is classified as a revenue-sharing contract; the revenue transfer agreement of the Chalong Rat Expressway and Burapha Withi Expressway, both owned by Exat, will be transferred to the TFF at 45% of total revenue.

Unit holders will gradually receive investment returns and principal throughout the 30-year contract period.

The first batch is expected to raise capital worth 44.8 billion baht.