In the last two months of 2023, nearly 16 trillion VND of real estate bonds matured.

According to data compiled by the Vietnam Bond Market Association (VBMA) from the Hanoi Stock Exchange (HNX) and the State Securities Commission (SSC), as of the end of October 2023, 18 private placement corporate bond issuances were recorded in October with a total value of VND 20,826 billion. These issuances had an average interest rate of 8.9% per year, with maturities ranging from 3 to 6 years.

Cumulatively from the beginning of the year to date, the total value of corporate bond issuances recorded on the market is VND 209,150 billion, including 25 public offerings worth VND 23,768 billion (accounting for 11.4% of the total issuance value) and 171 private placements worth VND 185,382 billion (accounting for 88.6% of the total).

Of these, the banking sector dominated with 99,023 billion VND (accounting for 47.3% of the total) of issued bonds, followed by the real estate sector with 68,256 billion VND (accounting for 32.6%).

According to VBMA data compiled from HNX, businesses repurchased VND 15,741 billion worth of bonds in October 2023. The total value of bonds repurchased by businesses before maturity from the beginning of the year to date reached VND 195,701 billion (corresponding to a 23.4% increase compared to the same period in 2022 and equivalent to 91% of the issuance value).

Banks maintained their position as the leading sector in terms of acquisition value, accounting for 47.8% of the total early acquisition value (equivalent to VND 93,490 billion).

According to VBMA statistics, the total value of bonds maturing in the remaining two months of 2023 is VND 39,309 billion. The structure of maturing bonds includes 40% of the value of bonds nearing maturity belonging to the real estate sector with over VND 15,631 billion, followed by the banking sector with VND 7,530 billion (accounting for 19%).

In the near future, two bond issuances are planned for the Vietnam Investment and Development Bank ( BIDV ) and Ho Chi Minh City Development Bank (HD Bank).

Specifically, BIDV has approved a private placement plan in the fourth quarter of 2023 with a maximum issuance value of VND 5,500 billion to increase Tier 2 capital. These are non-convertible bonds, without warrants, secured by assets, with interest rates determined by BIDV for each issuance, and maturities of 5 years or more.

As for HD Bank, the bank plans to issue a second private placement of bonds with a maximum total issuance value of 8,000 billion VND. The specific terms of the bonds, such as maturity and interest rate, will be decided upon issuance .

Source: https://www.nguoiduatin.vn/2-thang-cuoi-nam-2023-co-gan-16-000-ty-dong-trai-phieu-bds-dao-han-a634808.html