The bank also plans to raise Bt40 billion early next year via securitised bonds, president Khan Prachuabmoh said yesterday.
Few home-buyers took advantage of a mortgage offering a three-year fixed rate of 4.99 per cent after the bank launched it as part of the government's economic stimulus in April. While the bank targeted to offer mortgages worth Bt20 billion at the three-year fixed rate, there were only loans worth Bt2 billion extended.
Khan said the bank planned to change its conditions to make the package more attractive by allowing home-buyers to borrow up to Bt3 million instead of Bt1 million. It may also drop the condition requiring borrowers to be first-time buyers.
The bank also plans to lower monthly mortgage repayments for low-income groups to Bt2,000 from Bt2,400 under the Baan Ua Athorn affordable-housing project.
The bank plans to raise Bt40 billion in the first half of next year by issuing securitised bonds. Both foreign banks and local banks have formed four consortiums to bid for the bond arrangement, said Khan. The bank will choose bond arrangers next month.
Among contenders are ABN Amro, HSBC, Citigroup, Deutsche Bank and Standard Chartered Bank.
Part of its lending assets worth Bt500 billion will be put up for securitisation, he said.
Khan expects investor confidence to pick up next year if an election takes place. Then the bank would find it less costly to raise funds, he said.
Bonds will be sold in both local and overseas markets, he said. Maturity is expected to be between five and 10 years.
The bank's lending target is Bt95 billion this year and Khan is confident it will meet this. Its mortgages in the first quarter were worth Bt22 billion. Latest data suggest the housing market is fairly healthy as GHB's mortgages in May were Bt7 billion, only Bt1 billion lower than the same month last year.
Source: The Nation
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