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.

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Although the issuance volume has slowed somewhat in the last two months, rating agencies believe that the bond market has made significant progress after a period of stagnation a few years ago. The total size of the corporate bond market has now reached 1.38 trillion VND, almost returning to its peak in May 2022, partly demonstrating the market's ability to recover after a long period of stagnation.

Mr. Le Hong Khang - Director of Analysis at FiinRatings, commented: "The overall environment has improved significantly, stemming not only from the proactive approach of issuers in complying with regulations but also from increased information transparency. Competition in capital raising has clearly increased, reflected in the number of issuers, issuance scale, and credit capacity of issuers."

Regarding the recent conclusions of the Government Inspectorate on cases of misuse of bonds, experts believe that this even signals that the regulatory body is continuously striving to improve the transparency of the corporate bond market.

"This gives the market confidence that the State management agency will not ignore any violations, if any. At the same time, it signals to investors that the State management agency is trying its best to create transparency in the market," said Mr. Tran Le Minh, General Director of VIS Rating.

In addition to perfecting the legal framework and conducting inspections to ensure market transparency, the regulatory body recently announced plans to improve technical factors such as technological infrastructure and the yield curve to ensure a benchmark for market participants.

Mr. Nguyen Anh Phong, Chairman of the Hanoi Stock Exchange (HNX), stated: "The yield curve has been in place for quite some time. However, over time, it has become clear that improvements are needed to better reflect the market, so that market participants can truly use the yield curve to conduct transactions and as a reference tool."

Overall, in the last four months of the year, the projected bond issuance volume is approximately VND 109,000 billion, mainly concentrated in the real estate sector, indicating continued pressure in this sector. In addition, the banking sector remains the largest issuer, facing pressure to continuously increase Tier 2 capital to ensure capital adequacy ratios according to new regulations.

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