Bangkok, April 28, 2014 ? The SEC is seeking public comment on the use of trust as a means for fund raising and investment in overseas infrastructure projects or ?infrastructure trust? with a view to promoting Thailand as a regional financial connector for development of infrastructures in the region where tremendous investment funds are in need. Introduction of infrastructure trust will bring about more financial products and investment alternatives.

Infrastructure trust, having structural similarity to real estate investment trust (REIT), will be allowed to invest in overseas infrastructures in forms of direct investment in infrastructure project, investment in rights in the project?s future revenue or investment in shares of company operating infrastructure project.  Units of infrastructure trust can be offered to the public but must be listed on the Stock Exchange of Thailand. For infrastructure trust with exceeding 30% of its investment in infrastructure project under construction, the unit trust will be allowed to offer only to any investors with a minimum subscription of 10 million baht.

In addition, investment in infrastructure trust will obtain the benefit of tax neutrality. Upon receiving revenue, trust will be exempted from income tax while distribution from trust to unitholders will then be taxable. Unlike investment in infrastructure fund which is of benefit to Thailand, however, unitholders of infrastructure trust will not be entitled to tax privilege. 

The consultation paper is available on www.sec.or.th. Stakeholders and interested parties are welcome to submit comments through the website, facsimile at 0-2263-6231 or email at sutira@sec.or.th until May 6, 2014.