A report of SSI Research showed that real estate firms issued VND106.5 trillion worth of bonds, which accounted for 38 percent of the total value of bonds issued.

In Q3 2019, Hung Thinh Land mobilized VND500 billion worth of bonds through 2 issuance campaigns. The firmed raised VND3 trillion worth of funds in total in 2019 to implement a series of important projects.

Phat Dat JSC mobilized VND1.8 trillion worth of capital from bonds to prepare for the projects to be implemented in 2020. It will build street houses, develop apartments in Binh Duong and continue implementing the Nhon Hoi New City project in Quy Nhon.

No longer relying on bank loans, real estate firms are seeking capital from many different channels, including bond issuance, stock sales and M&As.

In the stock market, An Gia Real Estate in early 2020 listed 75 million shares with the capitalization value of VND1.875 trillion. An Gia now has the land bank of 70 hectares and plans to launch 9,000-12,000 products in the next three years.

Some days ago, FLC Homes announced the plan to list shares, slated for early 2020, with the share price of VND35,000 per share, i.e. the capitalization value of VND14.35 trillion.

In addition to 10 high-end ongoing projects, FLC Homes plans to expand its land bank in many localities, including Hanoi, Quang Ninh, Soc Trang and Gia Lai.

Real estate firms are trying to approach foreign capital. Novaland has successfully found the foreign syndicated loans of $250 million. The capital would be used to develop coastal recreational resort complexes.

Analysts affirmed that there are many channels through which real estate firms can mobilize capital for 2020.

Corporate bond and FDI are the capital sources for firms to exploit thanks to the attractiveness of the Vietnamese real estate market. However, in order to issue corporate bonds, they need to strictly follow the regulations on information exposure and upgrade the project implementation capability.

Le Nhi Nang, chief representative of the State Securities Commission in HCM City, predicted that the capital to be mobilized from bond issuance in 2020 may increase by 80-90 percent to VND200 trillion.

At present, the capitalization value of real estate firms account for 23 percent of the total capitalization value in the market. However, there are only 120 listed firms, and if the other firms list shares, they would be able to easily find capital in the stock market.

Analysts believe that the shares of the companies with high competitiveness and high growth rates such as VHM of Vinhomes, DXG of Dat Xanh JSC and HDG of Ha Do will attract cash flow.

Mai Lan 

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