Over $8.6 billion in corporate bonds issued in first 10 months

Wednesday, Nov 08, 2023 08:50

An employee performs transactions at an office of Vietcombank in Vĩnh Phúc Province. — VNA/VNS Photo Trần Việt

Positive signals are seen in the corporate bond market, contributing to the long-term capital mobilisation channel for businesses and the economy.

In the first ten months of the year, over VNĐ209.15 trillion (US$8.61 billion) was raised from the issuance of corporate bonds, according to data compiled by the Việt Nam Bond Market Association (VBMA) from the Hà Nội Stock Exchange (HNX) and the State Securities Commission (SSC).

There were 25 initial public offerings with a total value of nearly VNĐ23.77 trillion during the period, accounting for 11.4 per cent of the total value, and 171 private placements worth VNĐ185.38 trillion, or 88.6 per cent.

The banking sector was the largest issuer, with a total issuance value of VNĐ99.02 trillion, equivalent to 47.3 per cent, followed by the real estate sector with VNĐ68.25 trillion, or nearly 32.6 per cent.

The real estate businesses also performed positively in the bond market, as the total value of bonds issued by the group in the first ten months reached VNĐ73 trillion, a gain of 10 per cent over the same period, accounting for 36 per cent.

In October alone, the total value of issued corporate bonds reached VNĐ20.82 trillion, an increase of 50 per cent from the previous month.

Particularly, Vinhomes recorded the largest issuance volume of VNĐ5 trillion, with an interest rate of 12 per cent per year and a maturity period of 1.5-2 years. The highest interest rate in the month was 12.5 per cent per year from the sale of VNĐ1 trillion bonds by Saigon Capital.

The VBMA reported that companies bought back corporate bonds totalling VNĐ13.64 trillion in October, down 17.4 per cent year-on-year.

For the remaining months of this year, the total value of bonds reaching maturity would be VNĐ41 trillion.

The Ministry of Finance said that following the issuance of Decree No. 08 and the synchronised implementation of measures to stabilise the market, from the second quarter of 2023, the corporate bond market had shown signs of improvement, and investor sentiment had gradually recovered.

Companies had successfully issued new bonds, raising capital for production and business activities and generating cash flow for debt repayment. The volume of bond issuances had been increasing month by month.

At the regular Government press conference held in October, Deputy Minister of Finance Nguyễn Đức Chi said that after more than three months of operation, the scale and liquidity of the bond exchange had shown significant growth. As of October 31, the exchange had received and traded 451 bond codes from 114 companies, with a registered trading value of approximately VNĐ336.77 trillion. — VNS

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