Property bond issues jump in Q1
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Bonds issued in the first quarter by seven listed property companies rose 38 per cent year on year to Bt12 billion.
“Property is one of the business sectors that have enjoyed great benefits from bond issuance. However, their bonds are small because of the specific requirements made by the developers to invest properly in their projects,” said Ariya Tiranaprakij, executive vice president of the Thai Bond Market Association.
“Those firms have also issued bonds quite frequently, in contrast to the overall bond market, which is slowing down,” she said.
In the first quarter of last year, five property firms issued bonds worth Bt8.7 billion.
The Bt12 billion mobilised by property firms in the first quarter of this year accounts for 30 per cent of the Bt43-billion total raised by private companies.
This was down significantly from the same quarter of last year, which saw Bt140 billion in proceeds from the sale of bonds, as commercial banks increased their reserves for risk assets.
