The Thailand Future Fund (TFF) is likely to be launched in May, slightly behind the previously anticipated March debut, with a total asset size of 40-45 billion baht, says MFC Asset Management.
The TFF will be run by Krungthai Asset Management and MFC Asset Management, two firms in which the Finance Ministry holds a major stake.
Initially the fund was expected to be launched late last year, but the date was moved after a glitch in the amendment of the Expressway Authority of Thailand's (Exat's) revenue contract to transfer money to the government's infrastructure fund.
Prapa Puranachote, MFC Asset Management's president and executive director, said the TFF has filed initial public offering (IPO) papers with the Securities and Exchange Commission and the filing is being considered.
An important detail needs to be resolved before approval, she said, as a court case was filed by Exat's labour union.
"But the TFF aims to sell its investment units in the second quarter or sometime this year," Ms Prapa said.
Bloomberg reported that Exat's labour union had claimed it would be cheaper to use borrowings by the state enterprise to pay for road projects due to be financed via the TFF, said Ekniti Nitithanprapas, director-general of the State Enterprise Policy Office.
The Supreme Administrative Court is deciding whether to accept the case, Mr Ekniti said. The government's argument is that the fund is a key policy initiative needed to tap private-sector financing and can't be compared directly with the expressway authority, whose debts are guaranteed by the government, he said.
The cabinet approved the fund last year and said it would initially finance two expressways linking the capital to areas in the west and east, worth a combined 45 billion baht. Finance Minister Apisak Tantivorawong has said the fund would offer a yearly return of 7-8%.
The TFF is expected to raise 44 billion baht from the general public to help finance infrastructure projects.
The cabinet in May approved a proposal to use two expressways owned by Exat as underlying assets for the TFF. Under the proposal, 45% of future revenue from the Chalong Rat Expressway (Ram Intra-At Narong) and Burapha Withi Expressway (Bang Na-Chon Buri) would be backed by TFF units.
