Lender BIDV tops corporate bond market in H1

Thursday, Jul 16, 2020 10:12

A BIDV office. The lender was the largest bond issuer in the first half of 2020. — Photo vietnamplus.vn

The Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) was the biggest corporate bond issuer in January-June.

BIDV raised a total of nearly VND15.17 trillion (US$656 million) in the first half of the year, according to the Ha Noi Stock Exchange (HNX).

The two runner-ups were residential real estate firm Vinhomes and consumer staples company Masan, which raised VND12 trillion and VND10 trillion in the first six months.

Real estate developers TNR Holdings and Sovico Group, and lenders VPBank and HDBank were the four companies that raised between VND7 trillion and VND9.7 trillion worth of bonds in the first six-month period.

By sector, banks were the biggest bond issuers, raising total VND47.3 trillion of corporate bonds, the HNX reported.

Real estate firms raised total VND45.6 trillion and construction companies raised VND8.5 trillion, the HNX reported.

By groups of related companies, Masan-related and Vingroup-related companies sold the most bonds in January-June period with each group raising more than VND15 trillion.

Masan’s two member companies – metal firm Nui Phao and Vincommerce, acquired from Vingroup – sold total VND5.2 trillion worth of corporate bonds.

Besides Vinhomes, two other members of Vingroup – Green City Development JSC and Vincom Retail – mobilised total VND15 trillion.

After six months, the value of the total outstanding bonds at Vinhomes increased to VND24.4 trillion, including VND10.5 trillion worth of bonds that will mature in September and October.

TNG companies, which included TNR Holdings and TNL Holdings, raised VND13.59 trillion worth of bonds and Sovico-related issuers – Sovico Holdings, Sovico Group and Phu Long Real Estate – sold VND10.4 trillion worth of bonds in the first half.

The HNX reported the energy sector, especially wind and solar power firms, are becoming more attractive to investors.

Trung Nam Group sold VND5.3 trillion worth of bonds in the January-June period to fund the construction of solar farms. Hong Phong 2 Energy JSC and Ea Sup 5 JSC were two other main issuers, respectively raising VND1.7 trillion and VND1.34 trillion from selling bonds.

After six months, 130 companies have raised nearly VND156.33 trillion in total from selling corporate bonds.

The total value of the corporate bond market is equivalent to 8.6 per cent of the banking sector’s total deposits and savings, and equal to 19.5 per cent of the three local stock exchanges.

As the demand of selling and buying corporate bonds is increasing, the Ministry of Finance has recently warned companies of at-all-cost issuance, which may be highly risky for investors, especially individual buyers. — VNS

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