According to The Nation, several listed property developers plan to issue debentures worth more than THB 50 billion this year. Their intent is to boost cash flow for business expansion activities, especially in the long term.
On board with this plan, Quality Houses issued a THB 2 billion debenture last month, and the company plans to issue another, worth between THB 3 to 4 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 the rest to buy undeveloped land and construct residential project infrastructure.
Also, Ananda Development has successfully issued a THB 4 billion debenture this month, as part of a plan to reduce its financial costs to below 5 percent. Sansiri will issue a THB 3 billion debenture this year; THB 1 billion was issued in the first quarter, with the remainder slated for the second half. In addition, AP (Thailand) issued a THB 1.5 billion debenture early this year.
Others who expressed the intent to issue debentures include Pruksa Real Estate, Supalai and Land & Houses. Siam Commercial Bank reports that this year’s debt issuance by listed and non-listed developers is 10 percent higher than last year’s level, indicating that companies are looking to better manage their financial costs for the longer term.
