Thai DIF Fund plans major debt refinancing in 2027 through financial institutions with confidence in sustaining dividend levels, while TRUE’s network optimization project will boost lease renewal prospects in 2033 with FOC contract renewal option of up to 10 additional years.
Mrs. Tipaphan Puttarawigorm, Executive Director of the Property & Infrastructure Investment Group at SCB Asset Management Co., Ltd. (SCBAM), acting as the fund manager of the Digital Telecommunications Infrastructure Fund (SET: DIF), disclosed the fund’s latest debt management plan and operational outlook. The fund is preparing to refinance a major debt tranche maturing in 2027 through financial institutions, as infrastructure funds are not permitted to issue debentures under the regulations of the Securities and Exchange Commission (SEC).
The new loan agreement negotiations will be aligned with the fund’s asset lease tenures to ensure appropriate financing costs and interest rate spreads that best serve unitholders’ interests. For 2026 and 2027, the fund has set aside reserves of THB 1,482 million per year to cover the final balloon payment due in 2027.
Additionally, the fund is closely monitoring the interest rate direction of the Monetary Policy Committee (MPC). Absent any significant negative factors, the fund expects to maintain dividend payments at levels close to current rates. In Q1/2026, the fund paid a dividend of THB 0.2222 per unit.
Regarding the renewal conditions for the fiber optic cable (FOC) lease agreement beyond 2033, the contract may be extended for a maximum of 10 years if either of the following conditions is met: True Corporation Public Company Limited’s (SET: TRUE) broadband market share exceeds 33%, or broadband business revenue surpasses THB 16,500 million. Such conditions will be assessed based on annual reports, disclosures to the Stock Exchange of Thailand (SET), and data from regulatory bodies such as the National Broadcasting and Telecommunications Commission (NBTC).
Regarding the impact of the restructuring and asset transfer from Bangkok Fiber Co., Ltd. (BFKT) and Advanced Wireless Network Co., Ltd. (AWN), the fund has converted the contract structure from a net revenue-sharing arrangement to a lease agreement, which will expire concurrently with the master agreement in 2033. The fund has confirmed that net income and cash flows will not fall below those of the preceding 12-month period.
At the same time, the fund incurs additional expenses from tower relocation compensation on a lump-sum basis of approximately THB 22 million per year to mitigate cost risks, as well as asset dismantlement costs of approximately THB 54 million per year over a five-year period, which are considered immaterial relative to the fund’s net profit.
Regarding the True Group’s Network Optimization project, the process of replacing inactive telecommunications towers with active ones is currently underway and is expected to be completed by Q2/2026. This will enhance the likelihood of lease renewal with the fund in 2033, as the infrastructure is critical to business operations. Furthermore, the current lease agreements specify lease volumes and rental rates clearly through 2033, ensuring stable revenue from the True Group during this period.
In addition, the unitholders’ meeting held in April 2026 approved the fund’s entry into amended and new agreements with the True Group to accommodate internal corporate restructuring, including approval to amend the names of contracting parties in line with the new corporate structure. Regarding dividend distribution, the fund announced a Q1/2026 dividend of THB 0.2222 per unit, reflecting the continuity of returns. During 2024–2025, the fund paid a total annual dividend of THB 0.88 per unit.
The fund announced the dividend on 5 May 2026, with the unit transfer book closure date set for 19 May 2026 and the dividend payment date scheduled for 10 June 2026. Regarding tax benefits in Q1/2026, no material changes have occurred. Both individual and corporate unitholders, domestic and foreign, remain subject to withholding tax on dividends in accordance with applicable regulations.
