IFLR 1000
The Guide to the World's Leading Financial Law Firms

Thai banks have managed to maintain good levels of liquidity despite the financial crisis and this has provided a steady stream of available capital for growing businesses despite global lending conditions. After the country's political unrest cooled in the latter half of 2010, banks facilitated acquisition financing and acted as underwriters for the market's few IPOs.

One particularly interesting development in the past year has been the increasing tendency for Thai banks to finance regional projects. As international banks largely lost their appetite for Southeast Asian project financings, regional banks seem to have stepped in to fill that space, with Thai banks being particularly active. In fact, the year's largest project, the $2.7 billion Hongsa Mine-Mouth power project in Laos PDR, was financed by a syndicate comprised entirely of Thai banks. As one partner who worked on the Hongsa project noted: "This is the biggest project financing of the entire year and it is very exciting that it is entirely led by Thai banks. It really shows how they have liquidity despite the financial crisis, unlike international banks. This is generally a good thing for Thailand."

Regional commercial banks and multilateral institutions (for example, the Asian Development Bank and the International Finance Corporation) also seem to be returning to the projects market and Thai developers have been active both in domestic and regional projects but also in overseas acquisitions in the energy sector.

Government support for renewable projects has also paved the way for green energy projects within Thailand, and Thai banks are again taking the lead in financing. The PPP (public-private partnership) structures rolled out by the government in early 2010 have started to directly influence the market in the form of a proliferation of projects. Property lending also has remained strong, as Thailand's tourist trade and residential, industrial and commercial needs continue to grow.

The strength of the Thai economy is of course bad news for restructuring practices, which generally benefit counter-cyclically from market conditions. However, leading practices do continue to advise business in carrying out their court-mandated restructuring and business plans and ensure that the companies are compliant.

Allen & Overy's banking and finance practice has had a strong year, bolstered by the market increase in bank lending activity, property sector lending and a strong capital base in regional and domestic banks. The firm's strong project finance practice has also benefited from the general market increase and interest in major project financings around the region, particularly in the energy sector. Partner Stephen Jaggs brings extensive experience in regional bank lending, structured financings and projects, while partner Suparerk Auychai is also a key figure.

When it comes to bank lending, clients comment that Allen & Overy's team is experienced and professional: "They a have thorough understanding of the transaction," says one client. "Their high level of experience is the key to the success of the transaction. A&O is fully committed to the transaction, and key conditions and critical issues are well identified in advance. The turnaround time is fast and the transaction has been completed within a tight timeframe they had brought in a full professional team consisting of senior partners, a junior team as well as a support team. Khun Suparerk Auychai provided outstanding service."

Major banking transactions this year include advising the International Finance Corporation (IFC) on a $15 million loan to Electricité du Laos and Advising NordLB on its refinancing of two A330-300 aircraft leased to Thai Airways. The team also recently represented Standard Chartered on a Bt2 billion ($67 million) bridge loan transaction to Advance Agro.

A&O's project finance practice has also won many of this year's top mandates in the sector and client's appreciate the firm's reliability: "I think that their reliability is number one through innovation, and they think outside the box," says one. "Their service and advice have always been consistent, lawyers are good and reliable, and give value-added service. Allen & Overy really leverage their international capabilities."

The team is currently serving as English and Thai counsel to Kansai Electric (KEPCO), EGAT International and LHSE Holdings in connection with the financing and development of the 282MW Nam Ngeip 1 hydropower project. Lead partner Stephen Jaggs also recently advised Japan Bank for International Cooperation (JBIC) (the international arm of Japan Finance Corporation) on a private/public sector partnership framework for developing Thailand project and infrastructure work.

The financial services division at Baker & McKenzie covers a range of banking and financing matters, and is known in Bangkok for its critical mass of experienced partners and capacity to handle top banking and project finance transactions. The firm is appreciated by clients for its capability and professionalism. "They're as good as any of the top international firms here," says one client. "They're very systematic in their approach, and they're flexible. They've been for me and against me in deals, and they're very good."

One of Baker's major mandates this year was advising True Corp, Real Move and True Move in Project High 5 - a two-part financing transaction that was responsible for enabling the development of Thailand's first 3G network. The first part of the deal involved advising True in its acquisition of Hutch's Thailand operation and developing agreements with CAT Telecom. The agreements gave CAT Telecom the right to provide mobile telecommunication services by the HPSA network via 3G technology. Baker's second involvement in the project was serving as counsel to Real Future in obtaining a Bt6.3 billion ($210.6 million) from The Siam Commercial Bank in the form of a bridge loan for the acquisition of the Hutchison group. The value of the entire High 5 project was over Bt6.5 billion.

A second major finance mandate saw the team advise ING Bank and TMB Bank in euro denominated export credit facilities for the Canadoil Plate specialised plate production plant. The credit facilities were backed by Her Britannic Majesty's Secretary of State acting through The Export Credits Guarantee Department (ECGD), and the baht loan financing was used to enable the development, operation and construction of the plant. The project finance deal included financing the transaction at the project company level as well as coordinating and negotiating with the underwriters' legal counsel for the parent company, and the value of the project is estimated to be €168 million and Bt3 billion.

Chandler & Thong-ek's offerings are especially strong on the project finance side, where the firm has strong relationships with domestic Thai banks. Clients have high regard for founding partner Albert Chandler: "Al Chandler is the finest lawyer in Thailand," says one.

The firm's banking and projects practices are particularly adept at advising Thai banks on their investments into major regional projects. The project finance team has also been heavily involved in the developing clean energy field this year.

One of the firm's major mandates this year was acting as lead Thai counsel to the borrower Trans-Thai Malaysia and sponsors PTT and Petronas on the $200 million financing for the expansion and development of gas transit services from the Thai Malaysian Joint Development Area to a gas pipeline in Thailand's eastern seaboard. The cross-border financing between Thai Malaysia Joint Development Area and Thailand represented the first joint venture from a Thai company into the Malaysian market through a special purpose subsidiary.

Chandler & Thong-ek's team also recently represented a group of Thai banks in a dollar and baht syndicated loan for the financing of the Hongsa Thermal Power Plant and Phu Fai Mining company in Lao PDR. The Hongsa project is the largest project ever financed out of Thailand, and the $2.7 billion dollar deal is particularly exciting because it was sponsored by domestic Thai banks.

While not the largest of Thailand's international firms, Clifford Chance's banking and projects practices still maintain a strong reputation. One client describes the team by saying: "They give high quality advice. There is great availability of partners and assistants. They provide excellent service, and swift response to questions. Their network of lawyers in other jurisdictions is useful in complex cross-border transactions."

Clifford Chance's project finance team recently advised Siam Commercial Bank, Krung Thai Bank and TISCO Bank in their role as lenders on a syndicated acquisition loan for Sahaviriya Steel Industries (SSI) and its UK subsidiary to obtain the upstream steel production capabilities of UK-based Teesside Cast Products. The financing included a Bt23.9 billion ($798 million) onshore facility for SSI's Thailand base as well as a $600 million offshore facility to subsidiary SSI UK. This major deal was SSI's first overseas investment. The deal underscored Clifford Chance's multi-jurisdictional capabilities, as CC teams from Bangkok, Hong Kong and London all worked on the project.

Clients speak very highly of banking and finance partner Fergus Evans and project finance specialist counsel Joseph Tisuthiwongse. One client compliments Evans by saying: "He gives great advice and has high reliability and availability." Another client adds that: "Many senior partners disappear after the first call, which can be an ongoing problem where work is passed to associates doing the rest of the deal. That definitely does not happen with Fergus."

Clients praise Tisuthiwongse by saying that "Joseph, the lead counsel who worked closely with us in these deals, was very knowledgeable and was able to provide continuity and immediate response to ad hoc queries related to the deals. We're pleased with the quality of the advice and the turnaround time. Our team rates him highly amongst all the counsels we work with in Thailand from various different firms."

Hunton & Williams is known in the market for its strong project finance practice. The firm seems to have a particular acumen for advising on financings for domestic projects, and is increasingly seen in the renewable space. As the Thai government continues to subsidise and invest in domestic green energy projects, the firm should have a good place in the market moving forward. "Hunton & Williams is one of the firms you think of when you think of project finance practices in Thailand," says a competitor.

In 2010, Hunton & Williams advised Natural Energy Development Company (NED) in connection with development and project financing for the construction of one of a Thai solar farm that will be one of the largest in the world. The investment value of the plant will be close to Bt8 billion ($250 million), and it is anticipated that operation of the plant will begin in the latter half of 2011. The domestic project is especially important because it is seen as part of the government's plan for a renewable energy policy.

Linklaters' banking and finance practice combines the firm's international reputation and network and its long-term knowledge of the Thai market. Clients describe Linklaters as being "professional with a strong team and an extensive global network."

In April 2011, managing partner Wilailuk Okanurak and Wanwisar Nakarat advised The Dow Chemical Company and MTP HPPO Manufacturing on a $680 million financing for petrochemical projects in Thailand. Upon the deal's completion the financing was the largest of 2011, with 12 banks participating in the project.

Clients appreciate managing partner Wilailuk Okanurak: "She makes the client feel comfortable and know they're in good hands. She is pro-active and thinks ahead on behalf of the client, and is a strong negotiator," says one.

Waranon Vanichprapa also receives high praise. "In particular," says one client, "Waranon was able to provide solutions to allow for the closing. He's top for his experience, accessibility and ability to support closings. He is a very good lawyer-hands on and solution driven. Vanichprapa was instrumental in closing our transaction. He was essentially one of not even a handful of people that made the deal work and allowed me to exit the market my company and achieve one of our key strategic goals."

Partner Pichitpon Eammongkolchai recently represented Sahaviriya Steel Industries (SSI) and Sahaviriya Steel Industries as purchasers and borrowers in the financing for the acquisition of Tata Steel's Teesside Cast Products UK assets. The assets, which included the Redcar and South Bank coke ovens and TCP's power generation facilities and sinter plant, was key because the steel plant was unused for a year and 1,500 jobs were lost during that time.

On the restructuring side the Linklaters' team represented world's largest steel company ArcelorMittal on its proposed acquisition of 40% of G Steel. The deal included a proposed shareholder agreement and debt restructuring for the distressed company.

On both fronts, clients appreciate the Linklaters team's accessibility and capacity to handle bespoke transactions. One client notes that "Linklaters are able to continuously come up with creative solutions to seek and achieve necessary compromises. They're very experienced, competent and knowledgeable and represent their client's case well to other parties and stakeholders. They're available on short notice an always willing to go the extra mile."

Clients only have positive things to say about their work with LS Horizon. "The firm has provided good services," says one client "and the relationship with our company is excellent."

One of the team's most major mandates this year was advising Hongsa Power in relation to a $2.7 billion financing for the development of the 1,878MW Hongsa Thermal Mine-Mouth Power Plant in Lao PDR. This was one of the largest ever financings in Thailand's history-and the multi-tranched, multi-currency facility was sponsored by a syndicate nine of the top Thai banks.

The team also recently advised Solar Power (Sakon Nakorn 1) in relation to a Bt2 billion ($67 million) financing. The financing was provided by Kasikornbank to support the development and construction of several solar farms, which will each generate 6MW of power under the very small power producer policy. These plants are part of Solar Power Group's larger plan to manage 34 solar projects across Thailand in line with the Thai government's green energy plan.

While the domestic lending market has largely remained quiet, Norton Rose has been its fair share of deals this year related to credit facilities for inventory financing, short term financing and new joint ventures. Clients appreciate Norton Rose's team because of their knowledge, accessibility and English capability.

"They give a good command of written and spoken English in clarification of Thai laws and implications," says one client. Another notes that: "The firm's service level and advice are good. They respond promptly to queries and give advice quickly. For us, English proficiency and professionalism are two key criteria-it's always a difficulty to find good law firms in Thailand who are proficient in English."

Lead partner Somboon Kitiyansub recently led Norton Rose's team in advising a subsidiary of Volvo Sweden and Volvo Truck & Bus (Thailand), on a Bt85 million ($3 million) inventory financing for Thai customers. In 2010, the banking group also represented Bank of Ayudhya on a Bt85 million short-term credit for The Holistic Health Company. The loan will make a payment of shares possible in Evason Phuket and aid the renovation of the Evason Phuket Resort & Six Senses Spa.

Norton Rose's banking partners also acted for Bangkok Bank in providing a Bt1.4 billion credit facility to a joint venture of Dow Chemical and a subsidiary of Siam Cement for the construction of a new jetty and storage tank.

Restructuring has been relatively quiet in Thailand due to the country's generally favourable economic conditions, but Norton Rose has still been active in that sector, continuing to advise companies on court-sanctioned business reorganisation plans. The team also advised Tuntex Textile on the implementation of its plan to reorganise Bt2.3 billion ($77 million) of debt.

The Legists have a particularly strong finance practice when it comes to representing developers on regional projects. The firm is currently advising a developer on multiple hydropower projects on the Mekong River and the river's tributaries in Laos PDR. The projects are being developed through a Memorandum of Agreement between Laos PDR and Thailand, which allows the former to sell the electricity generated by the Laos PDR plants to Thailand. The firm is also advising the client on negotiating documentation for concession agreements and power purchase agreements (among other things) for the $3 billion set of projects.

Experienced partners Cynthia M Pornavalai and Santhapat Periera lead Tilleke & Gibbins' banking and finance practice, which provides clients with advice on a spectrum of issues including securities, loans, property funds, mutual funds, bonds, and derivatives as well as financial workouts and restructuring.

The banking and finance team recently advised financial institutions on telecom laws in relation to their bids to provide Bt15.85 million ($525,000) in credit facilities in order to facilitate the expansion of a 3G network in Thailand. Cynthia M Pornavalai also recently represented a property developer in relation to bank facilities in connection with a Bt800 million hotel project in Bangkok.

Weerawong Chinnavat & Peangpanor has good relationships with leading banks and Thai businesses, in addition to substantial international capability as a result of the partners' former association with international firm white and case. One satisfied client notes that "their services are very good."

In a deal that closed in July 2010, the firm represented a syndicate of lenders led by Bangkok Bank, Kasikornbank, TMB Bank and TISCO Bank in relation to a Bt13.5 billion ($400 million) credit facility for True Visions Group (True Visions) so that it can refinance the debt of its Pay TV group. True Visions is part of True Corporation, which is among the biggest mobile phone and fixed line internet providers in Thailand.