Banks continue to play a leading role in issuing corporate bonds

Illustration photo (Photo: MP)

In the private placements, major banks played a prominent role. VietinBank issued two batches of bonds with terms of 10 and 15 years with a total value of VND2,850 billion. Orient Commercial Bank (OCB) issued two batches of bonds with a total value of VND3,500 billion, with a term of 3 years. HDBank issued three batches of bonds with a total value of VND2,500 billion, with terms of 3 and 8 years. In addition, Sacombank, VIB, MSB and TPBank also participated with bond batches worth VND800 billion to VND2,000 billion, respectively, with terms of 2 to 3 years.

Bank bond interest rates in September fluctuated at a relatively low level, only from 5.2% to 6%/year, continuing to reflect the recent downward trend in interest rates in the financial market. This helps banks mobilize capital at lower costs, but creates a large difference in interest rates compared to non-banking businesses.

Meanwhile, real estate companies such as Phat Dat Real Estate Development Joint Stock Company and Truong Loc Company have issued bonds with high interest rates, up to 12%/year, respectively, with a maturity of only one year. Phat Dat issued bonds worth VND3,490 billion, while Truong Loc issued VND1,910 billion. The higher interest rates of real estate companies reflect increased risks in the context of the difficult real estate market.

In addition to the banking and real estate sectors, other enterprises such as Thang Long Thermal Power, Thanh Thanh Cong, and Bao Minh Securities also participated in issuing bonds with values ranging from VND150 billion to VND900 billion, but the interest rates and terms were relatively lower than those of real estate enterprises.

Since the beginning of the year, the corporate bond market has recorded 268 private issuances with a total value of VND250,396 billion, along with 15 public issuances worth VND27,054 billion. Banks accounted for 72% of the total issuance value, while the real estate sector, which used to be the main source of capital mobilization, only accounted for 19%. This reflects the trend that real estate enterprises are facing difficulties in raising capital, due to high interest rates and declining market demand.

In September 2024, businesses bought back a total of VND11,749 billion worth of bonds before maturity, up 2% over the same period in 2023. At the same time, the situation of late payment of interest and principal of bonds is also increasing. Specifically, there are 26 bonds with late interest payments with a total value of VND239.4 billion and 2 bonds with late principal payments worth VND550.4 billion.

It is expected that in the last months of 2024, about VND 79,858 billion of bonds will mature, of which up to 44% are bonds of real estate enterprises, equivalent to VND 35,137 billion. This may create additional pressure on enterprises to ensure liquidity and maintain debt repayment capacity.

In the secondary market, the total value of individual corporate bond transactions in September reached VND87,768 billion, with an average trading session of VND4,619 billion, up 40.2% compared to the average trading session in August. This increase reflects the gradually improving demand for bond transactions, especially when market interest rates gradually stabilize and financial conditions improve./.

Source: https://dangcongsan.vn/kinh-te/ngan-hang-tiep-tuc-giu-vai-tro-chu-dao-phat-hanh-trai-phieu-doanh-nghiep-680271.html