About the Post

Author Information

Viet firm to raise funds for 11 projects

(HANOI) Saigon Thuong Tin Real Estate Joint-Stock Co, part of the same group as the only bank listed on the Ho Chi Minh City Stock Exchange, will sell bonds and shares this year to raise capital for investments.

The Ho Chi Minh City-based property developer aims to raise funds for 11 property projects, Dang Hong Anh, chairman and general director, said in an interview in Hong Kong on Tuesday. The company will get 2 trillion dong (S$181 million) from a bond sale, and 125 billion dong from selling shares, he said.

‘We have many good opportunities and projects and we need more capital,’ Mr Anh said. ‘The difficulty for an issuer in selling bonds is creating opportunities for use of the proceeds, but Sacomreal has a lot of projects now.’ The company will pay a coupon of as much as 10.5 per cent on the securities, with an ‘interest rate that is still lower than borrowing from a bank,’ Mr Anh said. The company sold 1 trillion dong of 10 per cent five-year notes on Nov 15.

The minimum price for the sale of shares to strategic investors will be 100,000 dong, Mr Anh said. Viet Capital Securities Joint-Stock Co will advise on the sale, he said. ‘Strategic partners need to commit not to sell the shares at least in the next three years,’ he said. ‘They will be expected to provide us support in terms of management, human resources and experience.’ The developer was created in 2004 from the real estate interests of Saigon Thuong Tin Commercial Joint-Stock Bank, or Sacombank, the third-biggest company on the Ho Chi Minh City Stock Exchange. Mr Anh’s father is the chairman of Sacombank.

Sacomreal, which has interests in property development, brokerage and sales, forecasts profit this year will be 192 billion dong, compared with 17.9 billion dong in 2006.

 

Source: Bloomberg (Business Times 22 Nov 07)

Advertisements

No comments yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: