Issuance of corporate bonds: Will flourish in the coming time

Banking is the industry group with the highest corporate bond issuance value in the first quarter of 2025.

Real estate bond issuance "warms up"

Data from credit rating agency FiinRatings shows that in April, the value of corporate bonds issued increased dramatically, reaching VND35,500 billion, up 80% compared to the same period in 2024. Notably, the group of non-bank issuers has returned to the market after being absent in the first quarter of 2025, with a total issuance value of VND13,200 billion, mainly from real estate and trade and service enterprises. Meanwhile, the banking and securities industry continues to maintain issuance activities with lots with terms of 1-3 years, to supplement Tier 2 capital and capital for margin trading.

Corporate bond repurchase activities in April 2025 reached VND 11,000 billion, up 14.6% over the previous month, but down 14.6% over the same period last year.

Nguyen The Minh, Director of Research and Development for Individual Clients, Yuanta Vietnam Securities Joint Stock Company, said that real estate bonds were reissued in April mainly from businesses with good liquidity, to implement projects when the legal progress of the projects is accelerated and possibly to serve the final settlement of bonds due in the third quarter of 2025.

Previously, according to data compiled by VNDirect Securities Corporation, in the first quarter of 2025, there were 10 successful domestic corporate bond issuances, with a total issuance value of about VND 25,104 billion, down 84% compared to the fourth quarter of 2024 and down 12.8% compared to the same period last year. Of which, there were only 2 private issuances with a total issuance value of VND 2,000 billion, accounting for 8%; 8 public issuances with an issuance value of VND 23,104 billion, accounting for 92%.

According to expert Nguyen Ba Khuong (VNDirect Securities Corporation), in recent years, the issuance of individual corporate bonds has often been quiet in the first quarter and "warmed up" in the following quarters. In fact, the first quarter of each year is often the time when capital demand of enterprises is at a low level, and is also the quarter with the lowest credit growth of the whole year. Therefore, the issuance of corporate bonds by enterprises in general and by the banking group in particular is often at a low level.

The encouraging sign is that, according to Vietnam Investment Credit Rating Joint Stock Company (VIS Rating), the situation of handling overdue debt has had positive changes. In the first quarter of 2025, 17 issuers paid part or all of the overdue principal balance with a total value of VND 8,081 billion, an increase of 83% over the same period last year.

Maturity pressure remains high

According to data from the Vietnam Bond Market Association, in the remaining months of 2025, it is estimated that about VND 163,212 billion of bonds will mature, most of which are real estate bonds with VND 86,444 billion, equivalent to 53%. Commenting on the market in the coming time, expert Nguyen Ba Khuong said that it is likely that credit may begin to accelerate from the second quarter of 2025 until the end of the year, leading to an increase in capital mobilization demand of banks in the remaining quarters of 2025. Therefore, it is likely that from the second quarter of 2025, the banking group will actively issue bonds again.

According to Mr. Nguyen The Minh, market developments depend largely on the tariff policy between the US and Vietnam as well as the macroeconomic situation. If the uncertainties are resolved, after the second quarter of 2025, corporate bond issuance will be larger. The demand for bond issuance will still focus on the financial and real estate groups, in which real estate enterprises are expected to have large bond issuances to implement projects after legal issues of the projects are resolved, as well as to meet liquidity needs, when the third quarter of 2025 is the time when corporate bond maturity pressure is at its peak.

According to S&I Ratings, the real estate sector accounts for half of the maturity volume in the last three quarters of the year. In the third quarter of 2025 alone, the maturity volume of this group will reach VND57,500 billion. Financial pressure on real estate businesses will continue to be high in the coming time. Therefore, the value of bond issuance will also increase sharply in the last three quarters of the year.

Meanwhile, financial expert Nguyen Tri Hieu acknowledged that market developments depend largely on the tariff policy between the US and Vietnam. If the two sides reach an agreement to sharply reduce tariffs, it will have a positive impact on the bond market; otherwise, the domestic economy will certainly be affected, thereby affecting the bond market as well. “The bond market needs to make further progress, especially in terms of transparency of issuers’ information on their financial situation, plans for reasonable, legal, and appropriate use of capital, as well as credit ratings for issuers’ bonds. This is the basis for investors to buy bonds,” the expert emphasized.

Source: https://hanoimoi.vn/phat-hanh-trai-phieu-doanh-nghiep-se-khoi-sac-trong-thoi-gian-toi-702628.html