Banks mobilize nearly 200 trillion VND from bonds in 6 months

The fact that banks accounted for the majority with 76.3% of the total issuance value in the first half of 2025, or VND189.7 trillion, shows that commercial banks are looking for Tier 2 capital through the bond channel to meet credit growth needs.

According to FiinRatings' report on the corporate bond market, the primary bond market in June 2025 recorded an issuance scale of up to VND 105.5 trillion (up 52.4% compared to the previous month), of which 100% was private issuance.

In the first 6 months of the year, the market's issuance value reached VND248.6 trillion (up 71.2% over the same period last year), with 76.3% of the issuance value coming from banks.

According to FiinRatings' estimates, at this rate, the total value mobilized through the corporate bond channel in 2025 will reach over half a million billion VND - just lower than the peak in 2021, when the total mobilized value reached over 700 trillion VND.

The fact that banks accounted for the majority with 76.3% of the total issuance value in the first half of 2025, or VND189.7 trillion, shows that banks are looking for Tier 2 capital through the bond channel to meet credit growth needs.

According to the State Bank, by the end of June 2025, credit in the entire economy will reach more than 17.2 million billion VND, an increase of 9.9% compared to the end of 2024.

Remarkable credit growth has increased the need for commercial banks to increase Tier 2 capital to meet capital adequacy ratios.

This also reflects the fact that the amount of deposits into the credit institution system is slowing down, partly due to the policy of keeping deposit interest rates low, while banks still have to maintain the loan/total deposit ratio and the short-term capital usage coefficient for medium- and long-term loans.

Banks boost capital mobilization through bond channel. Photo: Nam Khanh.

With 76.3% of the corporate bond issuance value belonging to banks, the remaining 23.7% of the mobilized value - equivalent to about VND58.9 trillion, belongs to other industries.

Of which, real estate bonds account for about 67.3%, at VND39.6 trillion. This is understandable in the context of many projects having their legal procedures cleared, making access to credit and mobilization through corporate bonds more feasible. This is probably a positive sign for the real estate industry, thereby controlling the risk of bad debt of commercial banks.

Bond mobilization interest rates decreased significantly, from an average of 7.43% to 6.69%/year (average of all terms and types of bonds). 64% of the bond value was issued with a fixed interest rate mechanism, 22% with a floating interest rate (anchored by the average 12-month deposit interest rate of 4 state-owned banks), and the rest was a combined interest rate.

Regarding the secondary market, the report said that secondary transactions in June 2025 reached nearly VND 137.1 trillion in both private and public issuances, with the average daily transaction value increasing by 13.4% compared to the previous month, at VND 6,530 billion/day.

Banking and real estate groups still account for the majority, with nearly 71% of the total transaction value of the entire market.

In the first 6 months of the year, liquidity has become active again, while the transaction value of the banking group has not changed significantly compared to the same period last year, the real estate group has increased by 37.6% in value.

According to the report, the secondary market in June recorded an additional VND4,500 billion of problem bonds from businesses, bringing the total value of problem bond debt to VND23,000 billion in the first 6 months of the year (down 31% compared to the same period last year).

Of which, 45.8% of the value of problematic corporate bonds came from the real estate sector, 16.4% from the manufacturing sector, 8.7% from the construction sector and the remaining 28.6% came from other sectors.

The revised Enterprise Law, which took effect on July 1, requires the debt/equity ratio (including the value of the bond lot expected to be issued) to be no higher than five times when an enterprise wants to issue private bonds.

The new legal regulations will limit bond issuers that are enterprises or project companies with too high financial leverage; at the same time, it will help some cases move to the public offering channel.

Source: https://vietnamnet.vn/ngan-hang-huy-dong-gan-200-nghin-ty-dong-tu-trai-phieu-trong-6-thang-2425867.html