Kasikornthai bank extends loans to AEON
Kasikornthai bank extends loans to AEON
Kasikornthai Bank Limited (KBank) has extended loans and offered financial management services to Aeon Leasing Service (Lao) Co., Limited to support its local retail and motorcycle financing business, following an MoU signing.
Both parties are also ready to jointly develop payment acceptance channels and other innovative services, in a bid to assist Thai investors in Laos.
This year's loan target was set at not less than 250 billion kip, or equal to 1 billion Thai baht, according to a press release from KBank.
First Senior Vice President of KBank, Mr Suwat Techawatanawana said Aeon Leasing Company has been granted a Lao kip denominated loan by Kasikornthai Bank Limited to be used for its retail and motorcycle lending business in the country.
Aeon Group is a successful financial conglomerate in Thailand, offering personal loans and credit card services. Given the promising trends in Laos, the group's business expansion into this marketplace is expected to bring fruitful results.
Aside from financial support, KBank will assist Aeon to develop products and services such as innovative payment channels to help its customers in Laos.
Managing Director of Aeon Leasing Service (Lao) Co., Limited Mr Shiro Kitano said the cooperative effort with KBank would support the company's operations, making them more flexible.
The one-stop service will help reduce the number of relevant procedures and time needed.
The cooperative endeavour between the two companies to develop complete payment channels will not only provide greater convenience to customers in Laos, but also assist in modernising transactions in the market.
Having its headquarters and first branch in Vientiane, Aeon Leasing Service (Lao) is now expanding into other major cities across the country.
Amid slowing economic conditions, loans extended during the first haft of 2015 accounted for 30 percent of this year's target of 50 billion kip or 200 million baht. But the company plans to launch more marketing activities to boost business during the second haft of the year, as the overall economy is expected to benefit from the advent of the Asean Economic Community.
Mr Suwat added that KBa nk had operated its locally incorporated institution in Laos since last year, offering loans and financial transaction services to both individual and corporate customers, including Thai businesses that have inves ted in the country.
When providing credit, KBank assesses their business potential in Laos, plus their company outlook in Thailand. Such risk assessment is conducted to evaluate the entire group prospects.
Therefore, the bank can better underwrite credit and give other supporting services to the businesses.
