KASIKORNBANK (KBank) and Bangkok Commercial Asset Management (BAM) have partnered to launch ARUN Asset Management Company (ARUN AMC), a 1 billion Baht joint venture aimed at revitalizing distressed debt and supporting struggling borrowers.
This initiative aligns with the Bank of Thailand’s policy encouraging joint ventures to address non-performing loans (NPLs) and foster a sustainable credit ecosystem, ultimately benefiting the Thai economy.
“With Thailand’s gradual economic recovery and persistent household debt challenges, coupled with the central bank’s focus on NPL solutions, KBank and BAM have established ARUN AMC,” said Chongrak Rattanapian, President of KBank.
“This partnership will enhance NPL management efficiency and bolster KBank’s financial strength. We will also share in ARUN AMC’s profits as a 50% shareholder through KASIKORN VISION (KVision). The goal is to improve debtors’ financial liquidity, enabling them to restructure debt and sustain their livelihoods and businesses, contributing positively to the overall economy.”
Bunyong Visatemongkolchai, Vice Chairman and Acting CEO of BAM, highlighted ARUN AMC’s 1 billion Baht initial capital, shared equally by KBank and BAM. “BAM’s leadership in asset management, combined with our expertise in NPL resolution and long-standing partnership with KBank, makes this venture ideal,” he stated. “ARUN AMC aligns with BAM’s mission to revitalize assets, support debtors, and enhance the value of the second-hand property market, strengthening both KBank and BAM.”
Somchai Tanurukpairoj, CEO of ARUN AMC, outlined the company’s plan to acquire 50-60 billion Baht in NPLs from KBank. “Our expert team will work to restore debtors’ financial health, enabling them to recover and preserve their assets,” he explained. “We will also adhere to government debt relief measures, including the ‘You Fight, We Help’ program, ensuring continued support for KBank’s debtors even after their loans are transferred to ARUN AMC.”
ARUN AMC’s vision is “Being a light for debtors to overcome their financial crises.” By leveraging the combined strengths of KBank and BAM, the company aims to operate efficiently, manage costs effectively, and deliver strong returns for shareholders. ARUN AMC received its asset management company registration on December 26, 2024.
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