KBank and BAM co-invest 1 billion Baht to establish ARUN AMC
KASIKORNBANK (KBank) has teamed with Bangkok Commercial Asset Management Public Company Limited (BAM) to invest 1 billion Baht in the establishment of ARUN Asset Management Company (ARUN AMC). The new venture is designed to revive the status of debtors for a better quality of life and business operations while improving the efficiency of KBank’s non-performing asset management.These endeavors are in line with the Bank of Thailand’s policy of promoting the establishment of joint ventures to address bad debt problems and creating sustainability for the credit management ecosystem, which will be a boon for the overall Thai economy going forward.
Mr. Chongrak Rattanapian, President of KBank, said, “GivenThailand’s gradual economic recovery and persistently elevated household debt, coupled with the Bank of Thailand’s policy to promote the establishment of joint ventures to address non-performing loans, KBank has partnered with Bangkok Commercial Asset Management Public Company Limited (BAM) to establish ARUN AMC. The aim is to enhance efficiency in managing non-performing assets and strengthen KBank’s financial position. Additionally, the Bank will receive a share of the profits from ARUN AMC’s debt management operations as a 50-percent shareholder, with its investment made through KASIKORN VISION COMPANY LIMITED (KVision). ARUN AMC is expected to help improve financial liquidity for debtors, giving them the opportunityto restructure their debts and carry on with their lives and businesses. This, in turn, will positively impact the nation’s overall economy.”
Mr. Bunyong Visatemongkolchai, Vice Chairman and Acting Chief Executive Officer of BAM, said that ARUN AMC was established with an initial capital of 1 billion Baht, with KBank and BAM each holding a 50-percent stake. BAM is a leading player in the asset management business with potential and expertise in resolvingnon-performing loans in the financial institutions system and managing distressed assets. It has also maintained a long-standing partnership with KBank. The joint investment in establishing ARUN AMC aligns with BAM’s vision and mission to revitalize assets, support debtors in reentering the economic system, and enhance the value of the second-hand property market. Moreover, it strengthens both KBank and BAM, building upon past successes, and fostering collaboration that will drive true value creation in the asset management business.
Mr. Somchai Tanurukpairoj, Director and Chief Executive Officer of ARUN AMC, added that the company aims to purchase non-performing loans worth approximately 50 to 60 billion Baht from KBank. Such loans will be managed under a team with expertise in this field to restore the debtors’ status, as well as allowing them to recover and maintain their assets for livelihood and business continuity. In addition, the company has a management approach that responds to the government’s current debt resolution measures, like the “You Fight, We Help” project, as well as measures that may be issued in the future. Even though KBank’s debtors were transferred to ARUN AMC in 4Q24, they will continue to receive assistance under such measures.
ARUN AMC will operate under the vision of “Being a light for debtors to overcome their financial crises” by fully assisting debtors. The company combines the strengths of KBank and BAM to ensure efficient operations and reasonable operating costs, and generate income and profits that meet shareholders’ needs. ARUN AMC completed its asset management company registration on December 26, 2024.
