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Bangkok Property Developers Up Focus On Debentures

By on Jun 04, 2014 in Property News

Listed property developers plan to issue debentures worth more than Bt50 billion combined this year, as they seek to support their cash flow and serve 2014-2015 business expansion amid the country’s economic slowdown.    “We have to prepare our financial structure to support our business expansion in the longer term,” said Quality Houses president and CEO Rutt Phanijphand.  Quality Houses issued a Bt2-billion debenture last month, and the company plans to issue another worth between Bt3 billion and Bt4 billion in the second half of the year.  The developer will use part of the proceeds to replace a debenture due to expire this year, and part to buy undeveloped land and construct residential-project infrastructure.

Supalai’s board in February approved the issue of a debenture worth Bt6 billion, with half the amount set to be subject to an issuance in the latter half of the year.  Land & Houses intends to issue a debenture worth Bt8 billion during the course of the year, split equally between the two halves.  Ananda Development, meanwhile, has successfully issued a Bt4-billion debenture this month as part of a plan to reduce its financial costs to below 5 per cent.  AP (Thailand) issued a Bt1.5-billion debenture early this year for two reasons: to replace an existing debenture that will expire this year, and to generate funds to serve the developer’s 2014 business expansion.

Siam Commercial Bank executive vice president Sirote Vichayabhai said that both listed and non-listed companies across all sectors planned to issue debentures worth up to Bt400 billion combined this year, both in baht and foreign currencies.  This is 10 per cent higher than last year’s level.

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