Project finance specialists from Tilleke & Gibbins’ Bangkok office have contributed the Thailand chapter to Project Finance 2024 from The Legal 500. The guide, which is part of The Legal 500’s Country Comparative Guides series, furnishes investors and businesses with key information related to project finance in jurisdictions around the world. Each Q&A-style chapter provides in-depth details on the legal regimes affecting a wide range of project financing topics, including: Ownership structures and corporate governance; Security interests, regimes, and enforcement; Regulatory requirements and consents; Foreign exchange considerations; Environmental, social, and governance (ESG) issues; Public-private partnerships; Foreign judgments; Tax considerations; Common funding structures; and Insurance law principles. Tilleke & Gibbins also authored the Vietnam chapter of Project Finance 2024. The Thailand chapter of the guide is available as a PDF through the button below, courtesy of The Legal 500. The full guide is accessible for free on The Legal 500 website.

On October 13, 2023, Laos’ official gazette published the amended Law on Commercial Banks No. 39/NA dated July 17, 2023. The amended law came into effect on September 15, 2023, following its promulgation by the president of Laos. Below are some of the significant changes. Registered Capital Under the amended law, the minimum registered capital for establishing a commercial bank has been increased from LAK 500 billion (approx. USD 24.2 million) to LAK 1 trillion (approx. USD 48.4 million), while the minimum registered capital for Lao branches of foreign commercial banks has been raised from LAK 300 billion (approx. USD 14.5 million) to LAK 600 billion (approx. USD 29 million). Currently, the Bank of Lao PDR (BOL) is preparing a new regulation that will define the timeframe within which banks established in Laos before the enactment of the amended law must increase their registered capital. This change is not as significant as it may seem. Since the last Law on Commercial Banks (which also stipulated an increase in registered capital), Laos has seen a sharp depreciation of the Lao kip against foreign currencies. The increase of capital mandated by the amended law is meant to compensate for this depreciation. Change of Status of a Commercial Bank of a Brand of a Foreign Commercial Bank Another article in the amended law outlines two scenarios in which banks may alter their status. First, a foreign commercial bank in Laos holding 100% shares may change its status to a Lao branch of a foreign commercial bank. Conversely, a Lao branch of a foreign commercial bank may elevate its status to that of a foreign commercial bank holding 100% shares. In both cases, the bank must request a business operating license from the BOL corresponding to its new status, requiring it to meet

As part of its membership in Lex Mundi, Tilleke & Gibbins has published an updated edition of its Guide to Doing Business in Thailand for 2023. This guide outlines the key factors for starting and operating a business in the Thai market. Issues covered include: Investment incentives Financial facilities Exchange controls Import and export regulations Structures for doing business Requirements for the Establishment of a Business Operation of the Business Cessation or Termination of the Business Labor legislation, relations, and supply Tax Immigration requirements This publication is part of Lex Mundi’s Country Guides series prepared by member firms in more than 100 jurisdictions worldwide. The guides serve as a useful resource for planning international business strategy and researching new markets. The full Guide to Doing Business in Thailand is available through the button below.

In a significant development on December 5, 2023, the Central Bank of Myanmar (CBM) issued Letter No. FE-1/2937 granting authorized dealer licensed banks (ADLBs) the authority to freely transact in foreign currency trades, buying and selling at the market exchange rate for Myanmar kyat (MMK) as proposed by buyers and sellers through online trading platforms. Offshore remittances, however, must comply with the remittance criteria set by the Foreign Exchange Supervisory Committee. The online trading platform Refinitiv, initiated in June 2022 under the CBM’s guidance, facilitates the buying and selling of foreign currency between ADLBs and between banks and customers. The initiative was implemented in accordance with CBM Letter No. FE-1/789, dated June 21, 2023. The platform’s inception saw the exchange rate set at over MMK 2,900 per USD 1. Then, in August 2023, the CBM ordered banks and traders to limit foreign exchange transactions to an approved online trading platform, again with the exchange rate fixed at MMK 2,900 per USD 1. Transactions outside of online trading platforms continue to be governed by the exchange rate set by the CBM of 2,100 MMK per USD 1. Conversion Rules for Exporters On December 6, 2023, the CBM issued Notification No. 26/2023 lowering the percentage of Myanmar companies’ export earnings in foreign currency subject to mandatory conversion into MMK from 50% to 35% at the current official exchange rate set by the CBM at USD 1 to MMK 2,100. This mandatory conversion must follow the requirements for mandatory conversion of foreign currency, which remain in effect. For more details on foreign exchange developments, or on any aspect of financial regulations in Myanmar, please contact Tilleke & Gibbins at [email protected].