Potential Middle East investment in Thailand via Islamic Bank of Thailand
By Jon Fernquest
Since
the Islamic
Bank of Finance (IBank) was established by the
government in 2002, Thailand has been trying to develop its Islamic
banking
sector. The benefits of building a robust Islamic banking sector in Thailand are two-fold. First, it provides a place where Thai Muslims can feel comfortable keeping their life savings. Second, it is another conduit for attracting investment in Thailand's economy.
Todays article looks at a potential deal with a Thai leasing company that may provide an opportunity for entry into the aircraft leasing market.
Today's article begins after the vocabulary.
The photo on the right is of pilgrims circling the Kaaba at the heart of Mecca, the most sacred place in Islam (Source: Wikipedia).
Islamic Bank of Thailand (IBank) -
a bank "set up by the Islamic Bank of Thailand Act B.E. 2545 (2002), as
a state enterprise under the Ministry of Finance, administered by a
board of governors, with an advisory council on Islamic banking. The
bank operates in accordance with the rules of Sharia, or the Islamic
rules on transactions" (Source: www.bankthailand.info,
also see bank
website)
Islam (noun) - the religion presented by the Qur’an, "a text considered by its adherents to be the verbatim word of God...and by the Prophet of Islam Muhammad's teachings" (See Wikipedia)
Islamic (adjective)
Islamic banking - a system of banking around the world that follows Islamic law (Sharia) and Islamic economics (See Wikipedia)
Islamic law - the religion of Islam also provides a set of laws called the "Sharia" (See Wikipedia on the Sharia)
Islamic economics - the study and promotion of an economics that "conforms to Islamic scripture and traditions" that is "grounded in Sharia's condemnation of interest (Riba)" (See Wikipedia)
two-fold - has two different parts
potential - possible or likely in the future
leasing - renting some expensive thing (asset) such as real estate, a car or airplane instead of buying it, this may save money compared to buying it depending on the laws of the country (See Wikipedia)
aircraft leasing - the process of renting airplanes rather than buying them, usually done by airlines
robust - strong
Muslim - a person whose religion is Islam
life savings - the money that a person has saved over their whole life (in order to use during retirement or give to their children when they die (inheritance))
conduit - a system or object (person, place) used to pass something from one place to another (this could be water, money, goods, information, etc)
pilgrim - a person who travels to a place because it is sacred or holy in their religion (as part of their religious duties)
Kaaba - "a cube-shaped building in Mecca, Saudi Arabia...the most sacred site in Islam" (See Wikipedia)
Mecca - "a city in Saudi Arabia, and the holiest meeting site in Islam" (See Wikipedia)
sacred - 1. connected with God or a religion in a special way (holy), 2. so important that it cannot be criticized or questioned
Islam (noun) - the religion presented by the Qur’an, "a text considered by its adherents to be the verbatim word of God...and by the Prophet of Islam Muhammad's teachings" (See Wikipedia)
Islamic (adjective)
Islamic banking - a system of banking around the world that follows Islamic law (Sharia) and Islamic economics (See Wikipedia)
Islamic law - the religion of Islam also provides a set of laws called the "Sharia" (See Wikipedia on the Sharia)
Islamic economics - the study and promotion of an economics that "conforms to Islamic scripture and traditions" that is "grounded in Sharia's condemnation of interest (Riba)" (See Wikipedia)
two-fold - has two different parts
potential - possible or likely in the future
leasing - renting some expensive thing (asset) such as real estate, a car or airplane instead of buying it, this may save money compared to buying it depending on the laws of the country (See Wikipedia)
aircraft leasing - the process of renting airplanes rather than buying them, usually done by airlines
robust - strong
Muslim - a person whose religion is Islam
life savings - the money that a person has saved over their whole life (in order to use during retirement or give to their children when they die (inheritance))
conduit - a system or object (person, place) used to pass something from one place to another (this could be water, money, goods, information, etc)
pilgrim - a person who travels to a place because it is sacred or holy in their religion (as part of their religious duties)
Kaaba - "a cube-shaped building in Mecca, Saudi Arabia...the most sacred site in Islam" (See Wikipedia)
Mecca - "a city in Saudi Arabia, and the holiest meeting site in Islam" (See Wikipedia)
sacred - 1. connected with God or a religion in a special way (holy), 2. so important that it cannot be criticized or questioned
Economics
BANKING
Middle East investor explored for Nava
IBank considers aircraft leasing18/08/2010
Somruedi Banchongduang
The Islamic Bank of Thailand is in talks with a Middle East-based bank about an investment in Nava Leasing, which could lead to opportunities for expansion into aircraft leasing, says the bank's president, Dheerasak Suwannayos.
The foreign financial institution is the regional leader in aircraft leasing and wants to use Thailand as a base for business expansion in Southeast Asia, he said.
investor
- a person or organisation that puts money into a company in exchange
for a future profit นักลงทุน
talks - negotiations, formal discussions of problems between different sides in a disagreement in order to solve the problem
in talks - now currently having talks
Middle East - Egypt, Saudi Arabia, Iran, Iraq, Israel, Syria, Turkey, United Arab Emirates, Yemen,Jordan, Kuwait, Lebanon, Libya, Oman, Palestine, Qatar, Algeria, Bahrain, Cyprus (See Wikipedia)
Middle East-based - the Middle East is the place where the business is operated, headquarters
headquarters (HQ) - the place or offices from where a business or organization is controlled (See Wikipedia)
investment - taking your money and putting it into projects to make a profit or earn interest (buying stock shares, bonds, real estate)
opportunities - situations in which it is possible to do what you want or need to do
expansion - when something increases in size, number or importance การขยายออก
financial institution - a bank, a company offering financial services such as loans, interest earning deposit accounts or investment funds
base - a place from where an activity can be planned and operated ฐานที่มั่น
base for business expansion - a headquarters for expanding a business (within a region)
talks - negotiations, formal discussions of problems between different sides in a disagreement in order to solve the problem
in talks - now currently having talks
Middle East - Egypt, Saudi Arabia, Iran, Iraq, Israel, Syria, Turkey, United Arab Emirates, Yemen,Jordan, Kuwait, Lebanon, Libya, Oman, Palestine, Qatar, Algeria, Bahrain, Cyprus (See Wikipedia)
Middle East-based - the Middle East is the place where the business is operated, headquarters
headquarters (HQ) - the place or offices from where a business or organization is controlled (See Wikipedia)
investment - taking your money and putting it into projects to make a profit or earn interest (buying stock shares, bonds, real estate)
opportunities - situations in which it is possible to do what you want or need to do
expansion - when something increases in size, number or importance การขยายออก
financial institution - a bank, a company offering financial services such as loans, interest earning deposit accounts or investment funds
base - a place from where an activity can be planned and operated ฐานที่มั่น
base for business expansion - a headquarters for expanding a business (within a region)
IBank will become the major shareholder of Nava with a 49% stake after completing a tender offer for the leasing company next month. The unnamed foreign bank could be a strategic partner of Nava or may consider a joint venture.
In the case of the joint venture, Nava may raise capital by offering new shares in a private placement to the foreign institution. IBank would maintain at least 49% in Nava but consider selling all shares to the foreign bank depending on the business plan of the overseas investor.
stake
- a share or a financial involvement in something such as a business
tender offer - offering to buy new stock shares in a company at a certain price (See Wikipedia)
strategic - done with a special plan to achieve long term goals
strategic partner - another company that a business works with to help achieve its goals
joint - done together; belonging to or shared between two or more people ความร่วมมือกัน
venture - a new activity, usually in business, which involves risk or uncertainty ธุริกิจเสี่ยงแต่สามารถทำกำไรได้
joint venture - a business owned and operated by two or more other businesses
capital - money invested in a business (See glossary)
raise capital - look for and find investors willing to invest in a business
private placement - when the stock shares of a company are sold directly to people (instead of through the stock market)
maintain - to keep
tender offer - offering to buy new stock shares in a company at a certain price (See Wikipedia)
strategic - done with a special plan to achieve long term goals
strategic partner - another company that a business works with to help achieve its goals
joint - done together; belonging to or shared between two or more people ความร่วมมือกัน
venture - a new activity, usually in business, which involves risk or uncertainty ธุริกิจเสี่ยงแต่สามารถทำกำไรได้
joint venture - a business owned and operated by two or more other businesses
capital - money invested in a business (See glossary)
raise capital - look for and find investors willing to invest in a business
private placement - when the stock shares of a company are sold directly to people (instead of through the stock market)
maintain - to keep
The bank would consider the business scale of the investment in Thailand by the prospective strategic partner before making a decision on a Nava share sale," said Mr Dheerasak. "We believe the investment would provide benefits to the country, particularly in building up the country's Islamic financial infrastructure, as well as greater chances for business expansion.
scale
- size (relative size)
prospective - likely to happen, or expected to happen
provide - to give someone something that they want or need
benefits - good things people get from a project
infrastructure - a set of systems within a place or organisation that affect how well it operates, e.g., the telephone and transport systems in a country or the system of train tracks that a railway uses สาธารณูปโภค
building up the country's Islamic financial infrastructure - creating organizations and people skilled in Islamic finance so the country can participate in this market
prospective - likely to happen, or expected to happen
provide - to give someone something that they want or need
benefits - good things people get from a project
infrastructure - a set of systems within a place or organisation that affect how well it operates, e.g., the telephone and transport systems in a country or the system of train tracks that a railway uses สาธารณูปโภค
building up the country's Islamic financial infrastructure - creating organizations and people skilled in Islamic finance so the country can participate in this market
If the bank decides to sell all of its shares in Nava, it would search for another acquisition opportunity in the business segment.
IBank booked loan growth of 56 billion baht for the first seven months of the year, close to its full-year target of 60 billion. It said non-performing loans were being controlled at satisfactory level of 6% of the portfolio.
Despite new NPLs rising from customers in southern provinces due mainly to continuing unrest, existing bad debts continued to decline under good management, said Mr Dheerasak.
search
- to look somewhere carefully in order to find something ค้นหา
acquisition - when one company buys part of another company
opportunity - a situation when it is possible to do something that you want to do (See glossary)
segment - a part of something ตอน
segment - a separate part ส่วนต่างๆของสังคม
business segment - industry, part of the private sector of an economy, group of businesses that do the same kind of business
loan - an amount of money that a person, business, or country borrows, especially from a bank เงินกู้
target - goal, amount you are planning to achieve เป้าหมาย
Non-performing loan (NPL) - a loan no longer being repaid to lender, in default or close to being in default (See Wikipedia)
default, in default - fail to pay back a loan, as promised
unrest - political unrest, when protests get violent and start disrupting society and economy and people's lives
bad debts - same as "non-performing loans" above
portfolio - the set of investments owned by a person or organization, securities (stocks, bonds) owned and derivatives owned by a firm or individual หลักทรัพย์
acquisition - when one company buys part of another company
opportunity - a situation when it is possible to do something that you want to do (See glossary)
segment - a part of something ตอน
segment - a separate part ส่วนต่างๆของสังคม
business segment - industry, part of the private sector of an economy, group of businesses that do the same kind of business
loan - an amount of money that a person, business, or country borrows, especially from a bank เงินกู้
target - goal, amount you are planning to achieve เป้าหมาย
Non-performing loan (NPL) - a loan no longer being repaid to lender, in default or close to being in default (See Wikipedia)
default, in default - fail to pay back a loan, as promised
unrest - political unrest, when protests get violent and start disrupting society and economy and people's lives
bad debts - same as "non-performing loans" above
portfolio - the set of investments owned by a person or organization, securities (stocks, bonds) owned and derivatives owned by a firm or individual หลักทรัพย์
(Source: Bangkok Post, BANKING, Middle East investor explored for Nava, IBank considers aircraft leasing, 18/08/2010, Somruedi Banchongduang, link)
