Thailand's Kasikornbank increases presence in Southeast Asia

The national flag of Thailand and flag of Kasikornbank. (Photo: Reuters)

Hanoi (VNA) - Kasikornbank, Thailand’s second-largest lender by assets, on May 30 bought a 220 million USD majority stake in Indonesia's Bank Maspion.

The deal will give Kasikornbank 67.5 percent of Maspion's shares and is expected to be finalised by the end of the year, the Thai lender said in a message to the Stock Exchange of Thailand.

It comes as Thailand looks for investment abroad with the local economy stagnating under low interest rates and burdensome household debt, AFP reported.

Indonesia, the region's biggest economy, is a particular target, with the largest commercial firm and rival Bangkok Bank snapping up a 2.28 billion USD stake in Bank Permata two years ago.

The latest deal will allow Kasikornbank to establish a more permanent foothold in Indonesia, following a decision in 2017 to invest 20 million USD for 10 percent of Bank Maspion.

Kasikornbank opened its first branch in Vietnam last year, and is establishing a presence in Myanmar -- having bought a 35 percent stake in Ayeyarwaddy Farmers Development Bank in 2020 -- in addition to Laos and Cambodia./.

VNA