VIETNAM – Coffee companies to raise funds via stock listings, share auctions

MILAN – Exporters and domestic processors in Vietnam may raise funds by way of stock listings or share auctions ahead of the next crop as many banks have tightened credit standards on loans to protect themselves from bad debt.
 
Inexim Daklak, one of the country\’s biggest exporters hopes to raise at least $1.2 million by auctioning 1.65 million shares early next month on the Hanoi stock market, the exchange reported on Thursday.
 
Thai Hoa Vietnam Group Co, one of Vietnam\’s largest coffee export companies, has sought licence to list shares on the Hanoi Stock Exchange, the exchange said on Wednesday.
 
\”Banks have limits this year in using short-term deposits for medium- and long-term loans, meaning investment in agricultural businesses is limited, so we have to look for another way to get funds,\” company’s executive said in an interview.
 
Exporters and domestic processors would need more than US $1.76 billion to buy all the beans from the harvest at the present domestic prices and assuming a crop of 19.77 million bags.