Corporate bond size recovers to 2022 peak

VTV.vn - As of October 15, the total cumulative value of corporate bond issuance since the beginning of the year reached VND458,000 billion, an increase of about 30% over the same period last year.

Illustration photo.

Although the issuance numbers in the last two months have slowed down, rating agencies believe that the bond market has made significant recovery steps after a period of stagnation a few years ago. The total size of the corporate bond market has now reached 1.38 quadrillion VND, which is almost back to the peak in May 2022, partly showing the market's ability to recover after a long period of freezing.

Mr. Le Hong Khang - Director of Analysis, FiinRatings commented: "The general environment has improved a lot, from the initiative of issuers in complying with regulations, but also from information transparency. Ensuring competition in capital mobilization has increased significantly, through the number of issuers, issue scale, and credit capacity of issuers".

Regarding the recent conclusion of the Government Inspectorate on cases of improper use of bonds, experts said that this is even a signal showing that the management agency is constantly making efforts to improve the transparency of the corporate bond market.

"This is to give the market confidence that the State management agency does not ignore violations, if any. And at the same time, it signals to investors that the State management agency is trying its best to create transparency for the market," said Mr. Tran Le Minh - General Director of VIS Rating.

Not only completing the legal framework and inspection to ensure market transparency, the management agency also recently said that it will have a plan to improve technical factors such as technology infrastructure and yield curves to ensure a reference basis for market members.

Mr. Nguyen Anh Phong - Chairman of Hanoi Stock Exchange (HNX) informed: "The yield curve has been maintained for quite a long time. However, over time, it is seen that there is still a need to improve it to be closer to the market, so that market members can actually use the yield curve to conduct transactions in the market, as a reference tool for market members".

In the last 4 months of the year, the expected cash flow of bonds payable is about 109,000 billion VND, mainly concentrated in Real Estate, showing that pressure still exists in this industry group. In addition, the banking group is still the largest issuer, with pressure to continuously increase Tier 2 capital to ensure capital safety ratio according to new regulations.

Source: https://vtv.vn/quy-mo-trai-phieu-doanh-nghiep-phuc-hoi-lai-muc-dinh-2022-100251028074455176.htm