briefs

Land & Houses has backed out of the Sam Yan land auction because of the higher-than-expected investment required, according to Tisco Securities.

Referring to a discussion with LH executives, the brokerage said yesterday that besides the steep cost and unattractive rate of return, the company said there could be a problem in transferring the assets to a property fund.

“LH has not yet sought financing for the project and it has also conducted a feasibility study on several sites, which would be developed under a concept like Terminal 21,” the securities house said in its research note.

LH and TCC Land were the two contenders for the 30-rai plot in the Sam Yan corner opposite Chamchuri Square. 

 

GH Bank makes zero-interest offer

The Government Housing Bank is offering a zero-interest home loan to celebrate its 59th anniversary.

The state-run bank said yesterday that members of the Social Security Fund, civil servants and some professionals were eligible for the zero interest rate for nine months. Other groups of borrowers will get the zero rate for six months. 

GH Bank is also making available a nine-month stepped-interest savings product paying an average return of 3.52 per cent per annum. The minimum deposit is Bt10,000. 

The loan and deposit promotions will continue until September 30. 

 

KTC raising funds from debentures

Krungthai Card is raising Bt6 billion through three debenture issues with coupon rates of 4.90-5.40 per cent.

To be sold through Krung Thai Bank, CIMB Thai Bank, Thanachart Bank and UOB (Thai), the bonds with maturities of two, three and four years carry coupons of 4.90 per cent, 5.20 per cent and 5.40 per cent, respectively. The minimum subscription is Bt100,000.

In a statement yesterday, KTC said that on July 25, the bonds would be available for subscription first to holders of KTC short-term debentures. On July 26, holders of KTC128A bonds can subscribe. The debentures would next be offered to general investors from July 30-31 and to institutional investors on August 3. 

 

Ratch invests in Laos power firm

Ratchaburi Electricity Generating Holding has invested Bt627.5 million in newly issued shares of Electricite du Laos Generation (EDLGen) to maintain its stake in the Laos-based electricity company. 

The investment in 35 million rights issue shares was completed by its subsidiaries Ratchlao Services Co and RH International (Singapore) Corp. 

Including the company’s subscriptions last year, Ratch now holds 123.95 million shares, or 10.11 per cent, in EDLGen. The subscription value is Bt2.08 billion.

EDLGen, a leading independent power producer in Laos and a subsidiary of Electricite du Laos (EDL), currently owns seven projects with total capacity of 387 megawatts. The proceeds from the rights issue will be used for acquiring five more operating power plants with combined capacity of 494MW from EDL. 

 

 

 

Correction

In the July 17 story on page A3 titled “Myanmar earns 67 per cent income from Yadana and Yedagun gas projects”, the part saying that “Myanmar fetched about US$2.174 billion from Yadana and Yedagun projects in 2006-2007” should have read that “Yadana and Yedagun projects have generated about US$2.174 billion in 2006-2007”.