Real estate businesses are ready to issue bonds again after a period of “absence”
According to data from the Vietnam Bond Market Association (VBMA), from the beginning of May to May 27, there was a 300 billion VND public issuance of corporate bonds by Investment and Trading Joint Stock Company. TNG and 28 private placements with a value of VND 15,681 billion.
Along with that, a number of real estate businesses have also re-issued individually, but the quantity is still modest. Specifically, My Phu Real Estate Investment and Trading Company Limited issued 700 billion VND of individual corporate bonds on May 17, 2022; Hoi An Invest Company also conducted a number of private placements in May, mobilizing at most 300 billion dong; An Gia Real Estate issued VND 300 billion of individual corporate bonds on May 12; or Long Thanh Riverside Joint Stock Company issued 105 billion VND of individual corporate bonds in the month divided into 2 phases.
In addition, there are 2 real estate enterprises, Van Phu INVEST and Hoi An INVEST, previously there were a number of issuances at the end of April (April 28-29) and were updated and announced during the period.
Compared to April, when there were no companies to issue bonds, this is a very positive signal that the individual bond market has never “closed” to real estate businesses after the Tan Hoang Minh event and most recently. policies to control capital into risky areas (real estate, securities), along with plans to review and inspect financial companies, audit, require securities companies to report about individual bonds…
The cautious and modest return of real estate businesses in the bond market was predicted earlier. VNDirect’s experts forecast that, in the short term, the corporate bond market may be quiet in the next one to two quarters as the market is waiting for policy and legal changes approved by state management agencies. issued in the near future.
Besides, issuers, consulting organizations, underwriters, institutional investors (banks, insurance companies) need time to adapt to new changes in policy, legal documents when new Circulars and Decrees come into effect.
In addition, individual investors also need more time to stabilize their psychology, consider and evaluate the market situation before making investment decisions.
Also on the issue of bond issuance recently, lawyer Truong Thanh Duc, Director of ANVI Law Firm shared with the press that it is impossible for a few violations of the enterprise to tighten the development of a whole company. market. Even, he said that the current regulations on corporate bond issuance are too much and need to be shortened in order for this market to develop more and become an important capital mobilization channel for businesses and the economy. economic.
In order for this market to go right, Mr. Duc said that it is necessary to harmonize when amending Decree 153/2020, to both effectively manage but not inhibit the development of the market. In order to do this, the lawyer said that the regulator needs to focus on two main issues: mandatory credit ratings for bond issuers and disclosure of issuer information.
After concerns about “squeezing” credit too strongly into real estate, at the same time, the bond market will disrupt capital into the real estate market. Recently, Deputy Governor of the State Bank of Vietnam Dao Minh Tu affirmed that the State Bank has no policy to tighten or lock real estate credit, only restrict/control with high-end real estate, resorts, and have incentive policies. capital for social housing and low income… Some real estate businesses still hope to have suitable “doors” to open capital flows.
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