Commercial banks’ purchase of real estate corporate bonds is considered indirect lending to real estate firms, experts say. Corporate bond rush The interest rates for the following years will be calculated by the average interest rate of three banks plus 4.8 percent. The bond interest rates of 10-14.5 percent per annum have caught special attention from the public because they are double bank deposit interest rates. However, the real interest rates bond holders can receive won’t be that high after they pay fees to banks. The HCMC Infrastructure Investment JSC issued VND200 billion worth of bonds with the interest rate of 11 percent for the first year. The interest rates for the next years will be calculated by the TP Bank’s one-year deposit interest rate plus 3.5 percent. Risks Kim Chi What's behind real estate firms’ race to issue corporate bonds? Real estate firms are rushing to issue corporate bonds, which analysts say shows their thirst … [Read more...] about VN banks told to be careful with corporate bonds
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Several local banks have reduced their interest rates in recent days, going against the banking sector’s general year-end trend of increasing rates to boost earnings. Savings rates were reduced by 0.1-0.2 percentage points by ABBank, Saigon-Hanoi Bank (SHB), VPBank and Techcombank.— Photo vietnamnet.vn On Monday, Saigon Commercial Bank (SCB) cut its 24-month savings rate by 0.2 percentage point to 7.55 per cent per annum. Ban Viet Bank (VietCapitalBank) in early November curbed savings rates by 0.1-0.2 percentage point for accounts with terms of less than 12 months and more than 24 months. But the bank raised rates for 15-month accounts by 0.2 percentage point to 8.5 per cent per annum. At Eximbank, savings rates for 15-month and 18-month accounts were also cut by 0.2 percentage point to 8.1 per cent per annum. Savings rates were reduced by 0.1-0.2 percentage points by ABBank, Saigon-Hanoi Bank (SHB), VPBank and Techcombank. The banks’ third-quarter financial … [Read more...] about VN banks lower savings rates but base rate could still be high
The Bờ Đậu BOT toll station on National Highway 3 in the northern province of Thái Nguyên. — VNA/VNS Photo Việt Hùng HÀ NỘI — The State Bank of Việt Nam (SBV) has said it would continue to direct credit institutions to strictly control credit in potentially-risky areas such as real estate and securities, especially Build-Operate-Transfer (BOT) and Build-Transfer (BT) transport projects. This was part of the Central Bank's report sent to the eighth session of the 14th National Assembly recently, which will be discussed by delegates. In the report, the SBV said many BOT and BT projects had been completed but were generating less revenue than planned, causing non-performing loans (NPLs) of about VNĐ53 trillion (US$2.27 billion). The SBV has repeatedly warned commercial banks about lending to BOT and BT transport projects due to the potential risks in this area. SBV data … [Read more...] about State Bank warns of NPLs from transport projects
Real estate firms are rushing to issue corporate bonds, which analysts say shows their thirst for capital. But there are risks. A report of the State Securities Commission (SSC) showed that VND60 trillion worth of corporate bonds were issued in the first half of the year. Meanwhile, according to Military Bank Securities, the figure is VND70 trillion. Real estate firms are rushing to issue corporate bonds, which analysts say shows their thirst for capital. But there are risks. The high bond interest rate is what analysts find worrying. Kim Chi Real estate firms switch to bonds due to less bank loans Bond issuance is becoming an ideal channel for real estate firms to raise capital as credit policies for property development are gradually being tightened, experts said. Strong desire for M&A deals in real estate Foreign investment flows into Vietnam’s property sector through merger and acquisition transactions have been reported to be on a strong … [Read more...] about What’s behind real estate firms’ race to issue corporate bonds?
Illustrative image (Source: VNA) HCM City (VNA) – Promoting investment in green growth was the focus of a forum on sustainable finance in Ho Chi Minh City on May 28. Participants at the event, who included experts from management agencies like the Ministry of Planning and Investment, the State Bank and the State Securities Commissions, commercials banks and international and domestic investment funds, discussed measures to push the implementation of green growth strategy targets. They also looked for ways to mobilise investment capital for climate change adaptation projects as Vietnam is facing increasing challenges from climate change. The International Financial Corporation (IFC) forecasted that from now until 2030, investment in climate-related projects in Vietnam could amount to 753 billion USD, including 59 billion USD in renewable energy and 80 billion USD in green works. Experts said that investment flow and funding from the private economic sector has a crucial role … [Read more...] about Forum seeks to promote investment in green growth