Summary

The Thai Securities and Exchange Commission ("SEC") is set to launch a new investment vehicle to investors in Thailand. It has approved in principle the establishment of the Thai Infrastructure Funds ("TIF"), a mutual fund which will invest in assets of infrastructure projects in Thailand owned by state's enterprises. The Thai SEC expects the Notification be issued in the latter half of 2010.

Full Update

Deliberations which started in 2008 and two hearings after, the Thai SEC recently approved in principle the establishment of TIF. This closed-end mutual funds will invest in assets of infrastructure projects in Thailand, such as electricity, waterworks, transportation projects and expressways. TIF aims to raise funds from the private sector to support state enterprises in developing infrastructure in Thailand. Under the TIF, the ownership of the infrastructure projects shall remain with the state enterprises.

The initial projects will focus on infrastructures of the Electricity Generating Authority of Thailand, the Metropolitan Electricity Authority, the Metropolitan Waterworks Authority and the Expressway Authority of Thailand.

The following are the significant details of the TFI:

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