GL Using Cyprus to Spearhead Expansion into Eastern Europe, Africa & Latin America
Back February 28, 2017
SET-listed digital finance firm Group Lease Public Company Limited (GL) has decided to set up an investments and financial services company in Cyprus to spearhead its expansion into Eastern Europe, Africa and Latin America.
Cyprus has been chosen as the springboard for GL’s global expansion because of its strategic location; it is a member of the European Union (EU) which is well known for its favorable taxation, legal and financial regimes making it ideal for GL to use as a center to raise funds and expand globally.
The strategic plan on global expansion came after GL has achieved historical-high profits of 1,062.82 million baht in 2016, which represents a whopping 82.34% increase from the year before. GL today (Feb 28) reported its 2016 audited financial statements to the SET, which were exactly the same as the unaudited numbers filed earlier.
“Our record-high profits, low D/E ratio of only one time and healthy balance sheets will help sustain our expansion globally,” GL chairman and chief executive officer Mitsuji Konoshita stated. The new expansion to Latin American is on top of earlier plans to expand to African and Eastern European countries.
Mr. Konoshita disclosed that GL has recently received a US$30 million credit line from one of the biggest banks in Brazil which can be used to support mergers and acquisitions or other financial services in Brazil or other countries in Latin America when the opportunities arise.
The flurry of overseas corporate activities underscore GL’s aggressive strategies to elevate itself into a world-class company after it has successfully expanded from its Thailand base into six other Asian countries namely Singapore, Cambodia, Laos, Myanmar, Indonesia and Sri Lanka.
Mr. Konoshita noted that GL has extended short-term investments and advisory services in Cyprus over the past two years on a trial basis before finally deciding to set up the new company there. “Now we are sure that Cyprus is the best place to do financial and investment services and even to raise funds globally to support our operations,” he stated.
Cyprus is a part of the European Union (EU) and the country is well-known as a center for the extension of investments and financial services into Eastern Europe and Africa because of its efficient taxation and legal regimes as well as favorable tax treaties with a lot of countries all over the world.
“We have decided to establish the investment and financial services company in Cyprus to accelerate our expansion into Eastern Europe and Africa as we have been contacted by many companies in those countries for collaboration in finance, leasing and micro finance services,” Mr. Konoshita stated.
He added that the Cyprus company will be set up shortly with an initial capitalization of about US$ 2-3 million.