CIMB expanding services to Vietnam and Cambodia

KUALA LUMPUR, March 29 — CIMB Group Holdings Bhd has applied for new banking licences in Vietnam and Cambodia, group chief executive Datuk Seri Nazir Razak said today.

“We have applied for licences in Vietnam and Cambodia, that’s all for the moment. But CIMB does have strategies for all other Asean markets,” he said. However, he did not reveal the details of the application or when the outcome is expected.

The regional operations of the CIMB Group are CIMB Bank, CIMB Niaga in Indonesia and CIMB Thai.

Datuk Seri Nizar was speaking to reporters after a signing ceremony between CIMB Group and Japan Bank for International Cooperation for a US$300 million fund facility for businesses across Asean.

Asked about the group’s dual listing on the Thai Stock Exchange, Nazir said it was expected to take place by mid-June this year. “The process under the FRS139 accounting standard requires us to announce our first-quarter earnings before the submission. That is why the timing is such,” he said.

On other development, Nazir said CIMB Group has a strong capital base and it could fuel its units CIMB Niaga and CIMB Thai if the need arises.

He said CIMB Bank’s total capital now is in excess of 15 per cent. “If CIMB Niaga and CIMB Thai feel that their growth trajectories need more capital, we are quite comfortable in supplying it,” Nazir said.

On the other hand, both units are also capable of funding their own operations via bonds as opposed to equities, he said.

CIMB Thai, which has announced a rights issue of RM300 million, is also in the process of selling its “bad loans” to the group’s unit that manages such loans, said its chief executive officer Subhak Siwaraksa.

It is also disposing three non-core assets for a total of RM22 million to the group, which includes a car rental firm as part of its restructuring exercise, he said.

Asked if CIMB Thai will remain listed after the dual listing of the group, Subhak said : “For now we will stay listed. Especially with the capital-raising, we will be around for some time.” — Bernama

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