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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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?
Other News Local food-processing industry ripe for investment The Saigon Times Daily Thursday, Nov 14, 2019,19:56 (GMT+7) Local food-processing industry ripe for investmentThe Saigon Times Daily Employees at the Hanoi-based facility of the wholly Thailand-owned CP Vietnam Livestock JSC produce sausages using European pasteurization technology – PHOTO: VNA HCMC – Vietnam’s food-processing industry has great potential for investment attraction, thanks to its large population, rising average income and consumption trends, according to experts at a conference held in HCMC today, November 14. The conference, which was held by the Vietnam Trade Promotion Agency (Vietrade), under the Ministry of Industry and Trade, and the Foreign Investment Agency, under the Ministry of Planning and Investment, was aimed at stimulating foreign direct investment in the food-processing industry, reported the Vietnam News … [Read more...] about Local food-processing industry ripe for investment
Ben Thanh-Suoi Tien metro project has completed about 70 percent of the work volume, expected to be done by the end of 2021 (Photo: SGGP) The announcement was made by deputy chairman of the city People’s Committee Vo Van Hoan on the sideline of a conference on technology application in reducing traffic accidents in the city yesterday. Despite the capital reduction, Mr. Hoan affirmed that the project’s construction progress and quality will be ensured. According to Mr. Hoan, the first metro line was scheduled to be built within five years but it has lasted for nearly ten years. The project’s implementation has seen some problems for taking place during a long phase amid unclear legal basis and shortage of practical experience. VND3.4 trillion is the total money saved after the city eliminating unnecessary factors and items from auctioning and bidding, Mr. Hoan said. After the Politburo gave opinions about the projects, the Government has assigned the city to … [Read more...] about Total investment of HCMC’s first metro line reduces by VND3.4 trillion
Talking to Treasury Secretary Steven Mnuchin, Deputy PM and Foreign Minister Minh affirmed that Vietnam has been improving its investment climate, and it encourages US companies to invest and do business in the country. He also proposed that the two sides continue handling issues of shared concern in the spirit of promoting win-win trade. Secretary Mnuchin agreed to keep fostering economic, trade and investment ties, considering these as a foundation for the two countries’ relations. He also appreciated Vietnam’s active sharing of information and settlement of some priority economic-financial issues. At another meeting, the Vietnamese official and Commerce Secretary Wilbur Ross reviewed the progress in bilateral economic-trade links. Deputy Prime Minister and Foreign Minister Pham Binh Minh (R) meets with US Commerce Secretary Wilbur Ross in Washington DC on May 23 To support the upward trend of these partnerships, they agreed to continue optimizing … [Read more...] about Vietnam, US to augment ties in economy-trade- investment, defense