Category: Latest News

Recently GL Finance Plc. paced another forward step with Kubota Dealers in Cambodia to provide financial leasing service on Kubota Walking Tractor (a set of Kubota diesel engine and Tra Chang power tiller).
It is now available at:
• Siam Kubota Dealer Seng Huy in Kampong Speu
• Siam Kubota Dealer Phalla Rithy in Kampong Chhnang
• Siam Kubota Dealer Tan Long Chea in Kampong Thom
And it will be expanded more to other provinces over the country soon.
This is also a good news for our farmer who are in need of Kubota Walking Tractor to improve their lives through higher productivity of their farming.
The customer makes advance payment only 10% to get a brand new Kubota Walking Tractor in 24 hours.
For more information please contact: 096 60 60 6666

The senior management of SET-listed digital finance firm Group Lease Public Company Limited (GL) has given assurance that the 3,477 million baht worth of loans and accrued interests as at the end of 2016 were extended to GL’s trusted long-time partners who are dealers in various products and services for which GL provides financing to end consumers.

“These are loans given to the dealers of motorcycles, agricultural machineries, solar panels and various electrical appliances. Many of them are our business partners who have also become our shareholders. They are trust-worthy,” GL chairman and chief executive officer Mitsuji Konoshita stated today (March 6, 2017).

He added: “What I care most is the relationship with our clients; we need to know the nature and requirements of their business. In this sense, it is perfectly reasonable and we are quite comfortable to extend the SME loans since most of our dealers have more than 3 years of relationship with us in leasing and other financing services.”

Mr. Konoshita issued the statement after some investors have raised concern about the transparency in the dealings following remarks by GL’s auditor in the 2016 financial statements. The statements referred to the loans and accrued interests in question which were extended to two groups of borrowers in Singapore and Cyprus who used a combination of GL shares and other assets such as real estate in Cyprus and Brazil plus government bonds as collateral.

The concern which circulated within some VI (value investors) circles was believed to be one of the factors behind the steep declines of GL share prices in recent days.

GL has been expanding aggressively from its home base in Thailand to neighboring countries in Asia by adopting its highly efficient and low-cost digital finance platform to extend leasing services to large number of grassroots borrowers. On top of that, the company has also expanded its lending portfolios to cover the small and medium-sized dealers who supply the various products and services to the end consumers.

Loans to these SME dealers have helped boost the company’s profitability in recent years. The most recent financial results showed GL making a record-high profit of 1,062 million baht last year, which represents a whopping 82.34% increase from the year before.

Referring to another part of the auditor’s remarks about the “extension” of the repayment period of the SME loans, Mr. Konoshita stated that the loans were initially given on a three-month rollover period over one-year maturity. After the company became fully satisfied with the borrowers’ credit worthiness, then the repayment term would be extended to one-year rollover period over total 3-year maturity.

As for the question on why the transactions were done in Singapore and Cyprus, Mr. Konoshita said it was because the tax regimes in the two countries are favorable for such deals.

GL FINANCE Plc. (GLF) contributes to National Bank of Cambodia’s Program “Let’s Talk Money!” Comic Book in order to take part in educating Cambodian children on finance-related knowledge. This new initiative by the National Bank of Cambodia (NBC) was launched in the morning of February 28, 2017.

According to NBC’s Official Facebook Page, the purpose of the program is to provide education on financial knowledge to Cambodian children age 8 to 12. Held at Daun Penh Primary School, the “Let’s Talk Money” program was also presided over by H.E Neav Chanthana, Deputy Governor of NBC and participated from Dr. Mok Sarom, Deputy Director General of Education and representative of Ministry of Education, Youth and Sports. Moreover, there were also another 400 participants including representatives from banks and financial institutions, development partners, teachers and students welcomed to the event as well.

The contribution of GLF supports the training on the financial knowledge to children who are the next generation of Cambodia as they are the main manpower for the country to develop its finance sector along with the company. In addition, it helps them to have a precise understanding on the importance of an efficient cash management. It should be also noted that GLF’s vision is to become one and only rural area dominator in providing financial leasing services in Cambodia.

Source of Photos: NBC’s Official Facebook Page

SET-listed digital finance firm Group Lease Public Company Limited (GL) has decided to set up an investments and financial services company in Cyprus to spearhead its expansion into Eastern Europe, Africa and Latin America.

Cyprus has been chosen as the springboard for GL’s global expansion because of its strategic location; it is a member of the European Union (EU) which is well known for its favorable taxation, legal and financial regimes making it ideal for GL to use as a center to raise funds and expand globally.

The strategic plan on global expansion came after GL has achieved historical-high profits of 1,062.82 million baht in 2016, which represents a whopping 82.34% increase from the year before. GL today (Feb 28) reported its 2016 audited financial statements to the SET, which were exactly the same as the unaudited numbers filed earlier.

“Our record-high profits, low D/E ratio of only one time and healthy balance sheets will help sustain our expansion globally,” GL chairman and chief executive officer Mitsuji Konoshita stated. The new expansion to Latin American is on top of earlier plans to expand to African and Eastern European countries.

Mr. Konoshita disclosed that GL has recently received a US$30 million credit line from one of the biggest banks in Brazil which can be used to support mergers and acquisitions or other financial services in Brazil or other countries in Latin America when the opportunities arise.

The flurry of overseas corporate activities underscore GL’s aggressive strategies to elevate itself into a world-class company after it has successfully expanded from its Thailand base into six other Asian countries namely Singapore, Cambodia, Laos, Myanmar, Indonesia and Sri Lanka.

Mr. Konoshita noted that GL has extended short-term investments and advisory services in Cyprus over the past two years on a trial basis before finally deciding to set up the new company there. “Now we are sure that Cyprus is the best place to do financial and investment services and even to raise funds globally to support our operations,” he stated.

Cyprus is a part of the European Union (EU) and the country is well-known as a center for the extension of investments and financial services into Eastern Europe and Africa because of its efficient taxation and legal regimes as well as favorable tax treaties with a lot of countries all over the world.

“We have decided to establish the investment and financial services company in Cyprus to accelerate our expansion into Eastern Europe and Africa as we have been contacted by many companies in those countries for collaboration in finance, leasing and micro finance services,” Mr. Konoshita stated.

He added that the Cyprus company will be set up shortly with an initial capitalization of about US$ 2-3 million.

Fast-growing SET-listed digital finance firm Group Lease Public Company Limited (GL) has posted net profits of 324.4 million baht in the three-month period ending 2016, which marks a new record high for the ninth consecutive quarter. Adding that to the 738.4 million baht profits in the first nine months of the year, all-year 2016 profits topped 1,062.8 million baht, which represents a whopping 82.34% increase from the year before.

The all-year 2016 profits, which exceeded the management’s target of 1 billion baht, reflected improved financial performance in all the markets in which GL operates, particularly in the two key traditional markets of Thailand and Cambodia.

Significantly, the Q4/16 profits also took into account, for the first time, profit contributions from the listed Sri Lanka finance firm Commercial Credit & Finance (CCF), in which GL acquired a 29.99% stake since late last year.

In spite of the record-high profitability in 2016, GL chairman and chief executive Mitsuji Konoshita declared that the group’s performance will be even stronger in 2017 because of a combination of organic growth and more mergers & acquisitions (M&A).

For a start, GL will be able to consolidate full-year profits from its 29.99% stake in CCF. “CCF has a very successful operation; the company is making more profits than previously projected,” Mr. Konoshita stated. CCF’s previous estimates of US$ 30 million net profits for 2017 have now been revised upward to US$ 32 million.

Sri Lanka aside, GL’s operations in Myanmar are taking off on a full scale this year after the group took over full ownership of a micro-finance firm BG Microfinance Myanmar (BGMM) and struck a strategic partnership with Myanmar whisky tycoon Aung Moe Kyaw who also owns Century Finance, a local finance firm licensed by Myanmar’s central bank.

According to Mr. Konoshita, BGMM which now operates more than 30 branches in various parts of Myanmar is expected to extend small-scale and group loans totaling US$ 50 million this year while another GL joint venture with Century Finance which focuses on providing “channeling” services (securing clients on a fees-based basis for Century Finance) is expected to lend about the same amount of US$ 50 million. If these targets are met, the two operations would generate total portfolios worth a combined US$ 100 million.

Meanwhile, GL Finance Indonesia (GLFI) is reported to be expanding aggressively after taking off late last year. Mr. Konoshita reckoned the Indonesian portfolio will top US$ 200 million this year, comprising of various types of consumer and micro financing loans. Being the largest market in ASEAN with more than 250 million population, GLFI is projected to make substantial profit contributions to the group in the years to come.

As for the Cambodian market which has surpassed Thailand to become the biggest profits contributor to the group, Mr. Konoshita expected that GL Finance (GLF, the group’s wholly-owned subsidiary in Cambodia) will roughly double its outstanding portfolio to about US$ 400 million by end-2017.

Cambodia has become the success story for GL. Through an exclusive franchise with Honda, the most popular motorcycle brand there, GLF has dominated the motorcycle leasing market and expanded to cover Kubota agricultural machineries and solar panels. GL’s IT team has also developed a highly efficient and cost-effective digital finance platform which is now being applied in all other GL markets.

The GL chairman maintained that with GL’s digital finance platform and its efficient IT system, the group can expand very fast to new markets. The group now operates in seven countries – namely Thailand, Singapore, Cambodia, Laos, Myanmar, Indonesia and Sri Lanka. Mr. Konoshita has announced earlier that it will expand to 13 new markets in Africa and Eastern Europe this year, bringing GL’s corporate footprint to cover a total of 20 countries.

The aggressive expansion plan is crucial to GL’s strategic goal to become a “global” company.

securing debt facility from WorldBusiness Capital Inc. with a guarantee from OPIC

“GL Finance PlC (Cambodia) is in the process of securing a $15 million senior debt facility from WorldBusiness Capital Inc (WBC 1). The facility will carry a guarantee from OPIC (*2) – a U.S. government agency based in Washington, DC. The loan application is presently in process and disbursement is expected to be completed towards Q2 of FY2017. All OPIC supported facilities require a US sponsor, and the investment from Creation Investments (*3) in Group Lease (Thailand) will act as a sponsor to this transaction. An OPIC supported facility will open doors for Group Lease to access additional financing in the future from OPIC as well as other Development Financial Institutions across the world.”

The main reasons for this tremendous opportunity are GL business is highly reviewed by OPIC and is recognized as helping development of people’s life and human rights. And also big supports from Creation Investments Capital Management who is a long term investor of Group Lease.

*1 WorldBusiness Capital, Inc. (WBC) is a commercial finance company based in Hartford, Connecticut, USA that offers flexible term loans helping businesses compete in the global marketplace. Founded in 2003, WBC is a direct lender staffed by multilingual professionals with many years of experience in cross-border trade and project finance and a proven track record of successfully closed loans around the world, in a variety of sectors. WBC focuses on lending to businesses in asset-intensive sectors such as manufacturing, distribution, logistics, transportation, agribusiness, food processing, packaging, renewables, equipment leasing, and commercial finance. Borrowers generally have annual revenue in the range of $10 million to $150 million. All borrowers must have some form of “U.S. affiliation”. WBC is an approved guaranteed lending partner of the Overseas Private Investment Corporation (OPIC), the U.S. Government’s development finance institution.

*2 OPIC mobilizes private capital to help U.S. businesses invest in emerging markets, catalyzing revenues, jobs and growth opportunities both in the U.S. and abroad. As of September 30, 2016, OPIC’s project portfolio totaled $21.5 billion.” OPIC achieves its mission by providing investors with financing, political risk insurance, and support for private equity investment funds, when commercial funding cannot be obtained elsewhere. Established as an agency of the U.S. Government in 1971, OPIC operates on a self-sustaining basis at no net cost to American taxpayers.

All OPIC projects adhere to high environmental and social standards and respect human rights, including worker’s rights. By mandating high standards, OPIC aims to raise the industry and regional standards in countries where it funds projects. OPIC services are available for new and expanding business enterprises in more than 160 countries worldwide.

*3 Creation Investments Capital Management is a private equity firm focused on financial services in emerging markets. Base in Chicago, the firm currently manages 15 platform investments in financial institutions across Latin America, South Asia, Southeast Asia and Eastern Europe. Through Creation’s portfolio companies, the firm serves over 7 million unbanked/under banked individuals and small businesses with needed financial services totaling US $5 billion in loans outstanding. Creation’s investors include leading institutional investors and family offices dedicated to achieving attractive financial returns and social impact.

Creation is GL shareholder for 2 years already of GL and GL new CD (20MUSD) underwriter

February 08, 2017
Congratulations!!
Grand Opening New HONDA DEALER LEAP SAMBO
Which is located on Road 21 opposite ACLEDA Bank of Prek Run Kroum village, Prek Keoy commune,
Saang District, Kandal Province.
Customers can lease (installment) motorcycle with GL Finance PLC. at HONDA Dealer LEAP
SAMBO from now onwards.
For more information:

• Contact us 096 60 60 666
• or visit our online leasing website: www.gl-e.com/kh