By completing the divestment from Minh Hoang Garment, the first three funds of Mekong Capital have made a complete exit from their investments. Mekong Capital is the first equity fund to successfully exit three funds in Southeast Asia Most recently, Mekong Enterprise Fund (MEF), a fund run by Vietnam-focused private equity firm Mekong Capital, has divested its final remaining investment in Minh Hoang Garment JSC. The deal came after the divestment of Mekong Capital’s stake in Asia Chemicals last month and the liquidation of Vietnam Azalea Fund last year. “With the exit from Minh Hoang, we are delighted to have completed the divestments of all of our first three funds. This enables us to focus on our newer investments in Mekong Enterprise Fund III, partnering closely with each company to ensure they each achieve their vision,” said Mekong Capital founder and partner Chris Freund. With the divestment form the first three funds, Mekong Capital plans to raise … [Read more...] about Mekong Capital fully exits investments in three private equity funds
Which investment has the least liquidity
The affordable apartment segment will be the star of the property market in the coming years, but its supply is increasingly scarce while the demand for this type of apartment remains high, according to an analysis by property services firm CBRE Viet Nam. In the first half of 2018, the number of affordable apartments opened for sale in Ha Noi and HCM City decreased by 20 per cent and 36 per cent, respectively, over the same period last year. CBRE forecast that the supply of affordable products will remain scarce until the end of this year. In fact, most of the apartment projects that have prices ranging from VND1.5 to VND2 billion (US$64,377 to $85,836) per unit have good transactions. At this stage, as the market for land near HCM City is cooling down, the money flow from investors is oriented towards middle-range apartments. According to experts, the supply of projects which have apartments priced around VND2 billion each is scarce while the actual demand is quite large. Almost all … [Read more...] about Demand for affordable apartments on the rise
Covered warrants is a new investment tool that on the face of it, appears to be an effective hedging and investment instrument. It offers lower investment costs and higher leverageability than conventional financial products, and expects to help investors limit losses and make higher profit. Covered warrants were allowed to start trading on the HCM Stock Exchange in Q3, beginning this month. It is the fourth product traded on the HCM City’s bourse, together with stocks, bonds and fund certificates. The new product is expected to provide investors with more investment and hedge options, while helping draw foreign investment as there is no cap on foreign ownership of this product. Covered warrants, issued by a securities company, allow the holder to buy (call warrant) or sell (put warrant) the underlying stock (including shares, bonds or other securities) at a specific price on or before a pre-determined date. As many as 10 securities companies will issue covered warrants, … [Read more...] about Covered warrants: the answer to investors prayers?
Barry Weisblatt, head of research at Viet Capital Securities What is your outlook for the Vietnamese banking sector? We are generally quite positive in our outlook for the Vietnamese banking sector. 18 per cent credit growth was quite solid in 2017 and was not the kind of window dressing we have seen in previous years where growth accelerates in the last two weeks of the year to reach the SBV’s target but, rather, was stable throughout the year. Moreover, we are seeing a shift into retail lending, which is having several positive impacts. First, the higher yields on retail assets helped keep net interest margins (NIMs) of the banks we cover stable at 2.99 per cent despite rising funding costs. Second, we are seeing non-interest income (NOII) make a more significant contribution to banks’ bottom lines. NOII increased from 12 per cent of Total Operating Income (TOI) for our coverage universe to 18 per cent in just two years due to triple-digit increases at some banks. Much … [Read more...] about The bright outlook for Techcombank
GIC Private Limited made a full exit from Vinasun at a price less than half of what it paid to buy in four years ago. Singaporean investment fund divesting from Vinasun GIC Private Limited (formerly known as Government of Singapore Investment Corporation), a sovereign wealth fund established by the Singaporean government, has just announced to have fully divested Vietnam Sun Corporation (Vinasun, code: VNS), according to the Ho Chi Minh City Stock Exchange (HSX). Accordingly, 5.4 million VNS shares (equivalent to an 8 per cent stake) have been transacted on HSX with the total value of VND80 billion ($3.5 million) on May 25. GIC poured around VND200 billion ($8.8 million) into Vinasun in August 2014, equalling VND45,000 per share. Thus, GIC divested at roughly 40 per cent of the purchasing price, losing approximately VND120 billion ($5.3 million). This move has made as the business results of the taxi firm have turned into the red and its stock fell sharply. Although … [Read more...] about Singaporean investment fund cuts losses in Vinasun