116 trillion new bonds issued, banks keep the "throne"

Banks still hold the top spot in terms of bond issuance volume during the first six months of the year. Graphic: Luc Giang

According to observations in the corporate bond market, the market has become increasingly active over the months since the beginning of the year, especially from April 2024 onwards. Statistics from the Hanoi Stock Exchange (HNX) show that the total value of newly issued bonds in the first half of the year reached VND 116,422 billion, with 118 successful issuances.

Banks are the group with the largest issuance share, with bonds consistently having high liquidity in the market. The average interest rate on bonds in this group is around 4-6%, with some banks offering rates close to 8% per year.

Real estate and construction are the second-largest sectors, after banking. Although real estate bonds remain relatively sluggish, the market has shown more positive signs in the last two months as some companies in this sector have begun raising capital through bond issuance again.

At the peak of the market, in 2021-2022, banking and real estate were two sectors that frequently swapped positions in terms of issuance volume, with real estate often holding the "top spot," being the sector that raised the most capital through bond issuance in the market.

On the secondary market, activity was more vibrant, with a total market transaction value of VND 491,157 billion, involving the buying and selling of 217 bond codes. The groups with the largest trading volume were credit institutions and securities companies.

On the other hand, many businesses have recently taken steps to negotiate with bondholders to extend bond terms or modify repurchase plans, which has somewhat eased the pressure of paying off maturing bonds.

This option further gives businesses more time to focus on addressing production and business challenges and balancing cash flow to repay debts, especially for the real estate sector, where debt repayment capacity remains low amidst a slow recovery in the housing market.

In addition, many businesses are also stepping up early bond buybacks to restructure debt, reduce financial burdens, and ease interest payment pressure.

Source: https://laodong.vn/kinh-doanh/116-nghin-ti-trai-phieu-phat-hanh-moi-ngan-hang-giu-ngoi-vuong-1365921.ldo