Quietly released yesterday on Thailand’s SEC website was that they have approved the framework for the infrastructure trust regulations. The key details of it are:

• It can invest in onshore/offshore infrastructure projects either directly/indirectly or via rights in revenue sharing
• Minimum size THB 10 bn, minimum investments of each new project post set up must be THB 3bn
• At least 70% of investments must have commercial revenues

So next year we will start to see power plants, roads, highways, trains, every possible form of infrastructure being sold to these REITS. Right now off the top of my head I see CK Group benefiting heavily with their holdings in BMCL, BECL, and TTW, all of which holding infrastructure related assets.

Bangkok, November 4, 2014 – The SEC will launch infrastructure trust regulations recently approved by the Capital Market Supervisory Board.

Vorapol Socatiyanurak, SEC Secretary-General said that the Capital Market Supervisory Board recently approved infrastructure trust regulations, scheduled to become effective early next year. The new regulations will widen fund raising channels for domestic and overseas infrastructure development and support Thailand to become a regional financial connector for infrastructure development in the region.

Infrastructure trust, with structural similarity to REIT (real estate investment trust), can invest in types of infrastructure projects providing benefits or services to the public at large. It can invest in onshore and offshore infrastructure projects either by making direct investment in form of freehold or leasehold as well as rights in revenue sharing agreement, or by making indirect investment in shares of company operating infrastructure projects. The minimum size of infrastructure trust is set at 10,000 million baht, providing further that if investing in two or more projects, the size of each project must be at least 3,000 million baht.

For units of infrastructure trust publicly offered, at least 70 percent of its investment must be in the projects having commercial revenues and the units must be listed on the Stock Exchange of Thailand. For infrastructure trust with less than 70 percent of its investment is made in the projects having commercial revenues, it will be allowed to offer units only to investors with a minimum subscription of 10 million baht each.

Source: SEC