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?
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A MB Securities Co's trading room. The company was among the top three underwriters for corporate bond issuance in the January-October period. — Photo thoibaotaichinhvietnam.vn The total value of corporate bonds was VND178.7 trillion (US$7.7 billion) in January-October this year, according to SSI Retail Research. Commercial banks remained the biggest bond issuers with VND79.4 trillion worth of bond issuance, accounting for 44.4 per cent of the total figure. Real estate companies issued VND61.27 trillion worth of corporate bonds, accounting for 34.3 per cent of the total. The remainders were infrastructure developers, securities firms and other types of business. In 2010, more than VND17 trillion worth of corporate bond notes was issued with about 55 per cent of the total belonging to real estate firms. The biggest issuers included Vinametric Co Ltd, the owner of Saigon Prince Hotel in HCM City. The company issued VND3.7 trillion worth of two-year bonds with yield rate set at … [Read more...] about Firms issue total US$7.7 billion worth of bonds in 10 months
As Vietnam officially assumes the chairmanship of the Association of Southeast Asian Nations (ASEAN) for the 2020 tenure, Tuoi Tre News spoke with a dynamic Thai entrepreneur, Dr. Supachai Verapuchong, to discuss his thoughts on the current situations and prospects affecting the ASEAN Economic Community (AEC), which turns five next year. Supachai, deputy managing director of Thai Nakorn Patana, one of Thailand’s biggest pharmaceutical companies, said developing a common mindset among AEC member states is crucial to its sustainability as a competitive enomic bloc. The 48-year-old business owner said a shift in world development from the West to the East and recent economic situations have opened up opportunities for ASEAN nations, but its members must start treating each other as partners, not competitors, if they were to turn the opportunities to their advantage. The ASEAN Economic Community was established in 2015 to promote the bloc’s free trade … [Read more...] about Common mindset key to ASEAN’s success as economic bloc: Thai entrepreneur
Property Property firms outpace banks in bond issuance By Dung Nguyen Thursday, Nov 14, 2019,19:27 (GMT+7) Property firms outpace banks in bond issuanceBy Dung Nguyen Two apartment buildings in HCMC. Real estate enterprises outpace banks in issuing the largest volume of corporate bonds in October - PHOTO: THANH HOA HCMC – Real estate enterprises outpaced banks to issue the largest volume of corporate bonds last month, according to a newly released report by SSI Securities Corporation. Specifically, property firms issued more than VND9.3 trillion (US$400.9 million) worth of bonds in October, accounting for nearly 55% of the total. Of the total, Vinametric Co., Ltd, the owner of Saigon Prince Hotel, issued over VND3.7 trillion worth of two-year bonds with a floating interest rate. In addition, Saigon Vina Land JSC offered VND1.85 trillion worth of three-year bonds with a fixed interest rate of 11% per year. Real … [Read more...] about Property firms outpace banks in bond issuance
Problems arising from practice Real estate has been among sectors seeing many successful M&A deals in recent times. In the first quarter of 2016, the Novaland Group acquired projects totaling about 30ha of land in the Nam Rach Chiec residential area, Ho Chi Minh City, from VinaCapital. In another deal, Singapore’s Keppel Land Limited acquired 40 percent of stock at the Empire City Company Limited by pouring US$93.9 million in the latter’s joint venture partners, including Gaw Capital Partners, Tien Phuoc Real Estate Joint Stock Company, and Tran Thai Real Estate Joint Stock Company. Many Japanese investors such as Hankyu Realty and Nishi Pippon Railroad have achieved cooperation agreements with domestic real estate investors such as Nam Long Investment Corporation, Sanyo Homes Corporation, and Tien Phat Real Estate Investment Corporation. According to Jen Capital Vietnam Property Fund Chairman Nguyen Vinh Tran, a lack of vacant land due to complicated site clearance … [Read more...] about Removing barriers to M&A