Vietnam Bond Market Association general secretary Do Ngoc Quynh saidraising funds through bond issues will help enterprises become lessdependent upon financial institutions.
Compared to raisingcapital by issuing stock, bond issues will not dilute existing sharevalues or affect ownership or control of the enterprises, Quynh added.
In recent days, three more listed companies have announced information concerning bond issue plans worth trillions of dong.
SaiGon Thuong Tin Real Estate Co (SCR) plans to issued bonds worth 99billion VND (4.7 million USD) with a term of 18 months and a floatingcoupon rate which will be adjusted monthly. Interest for the first monthwill be 17 percent per year.
Sai Gon-Ha Noi Securities Co (SHS)plans a three-tranche bond issue worth a combined 350 billion VND (16.7million USD) with a coupon rate of 20 percent, while Agribank SecuritiesCo (AGR) also expects to issue five-year bonds worth 3 trillion VND(142.8 million) with floating interest rates.
Last month, KhangDien House Trading and Investment Co (KDH) successfully issued 50billion VND (2.4 million USD) worth of bonds at a fixed interest rate of21.5 percent. Song Da Urban and Industrial Zone Development andInvestment Co (SJS) also raised 700 billion VND (33.3 million USD) byselling bonds with a coupon rate of up to 22 percent.
The factthat companies are willing to seek funding with such high yields is aclear sign that enterprises are desperate for capital.
"This method is suitable to medium-sized and large enterprises with a high degree of transparency," Quynh said./.