After a period of stagnation in the early months of the year, the bank bond market is witnessing a strong comeback in both issuance volume and offered interest rates.
Bond issuance boom
According to data from the Vietnam Bond Market Association, in the first five months of the year, banks offered more than 61,000 billion VND in bonds. In the most recent month alone, the issuance value reached approximately 33,000 billion VND , accounting for more than half of the total issuance from the beginning of the year to date.
Many banks have continuously entered the market with large-scale fundraising rounds. HDBank conducted 4 issuance rounds, while OCB launched 3 rounds to raise approximately 3,000 billion VND with the highest interest rate reaching 8.6%/year.
Earlier this month, VPBank also successfully issued a bond issue worth VND 1,000 billion with a 3-year term and a fixed interest rate of 8.6% per annum, an increase of about 1 percentage point compared to the end of last year.
Even leading banks are joining the race to raise interest rates. Vietcombank issued a bond issue with a fixed interest rate of 7.9% per year, about 3 percentage points higher than its issuance at the end of last year. BIDV also continuously offered bond issues with interest rates above 8.1% per year.
Notably, VietABank currently leads in interest rates, having successfully issued a bond issue worth 100 billion VND with a yield of 9% per year.
Previously, according to statistics, bond interest rates in the first quarter of 2025 were only at 5.3 - 7% per year (depending on the bank and maturity). Bond interest rates increased in the context of rising deposit interest rates from the end of 2025 to the present.
Speaking to a reporter from Tien Phong newspaper , Dr. Pham Ngoc Huong Quynh, a lecturer at the University of Economics, Vietnam National University, Hanoi, said that the increase in bank bond interest rates to above 8.3% per year signals that the banking system is strongly shifting towards mobilizing medium and long-term capital.
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Banks are competing to issue bonds with higher interest rates than last year. |
According to Ms. Quynh, the demand for medium and long-term credit is currently very high, especially in sectors such as real estate, infrastructure, and manufacturing. Meanwhile, capital mobilized from household deposits remains primarily short-term. This forces banks to seek longer-term funding sources to reduce the pressure of maturity mismatches and meet increasingly stringent capital adequacy requirements.
In essence, bank bonds are not only a tool for raising capital but also help many credit institutions increase Tier 2 capital and improve their capital adequacy ratio (CAR). In return, banks must accept paying higher interest rates than regular deposits to compensate for the maturity risk and lower liquidity of the bonds.
Cost of capital enters a new phase.
According to Dr. Nguyen Thi Nhan from the School of Economics, Vietnam National University, Hanoi, the sharp increase in bank bond interest rates presents both opportunities and challenges for the economy.
With yields exceeding 8.3% per year and a higher safety rating compared to many other corporate bonds, bank bonds are becoming an attractive asset amidst the volatility of other investment channels. This is also the reason why large issuance volumes are still being absorbed relatively quickly by the market.
However, the downside of this trend is that the cost of medium and long-term capital for the economy is being priced higher than before. When banks have to raise capital at interest rates of 8-9% per year, it is difficult for medium and long-term lending rates to return to the low levels seen during the period of cheap money.
"This means that businesses, especially in the real estate, construction, and manufacturing sectors, will have to adapt to a more expensive capital environment. Investment projects need to be carefully calculated for financial efficiency, while businesses must also increase equity capital and reduce reliance on debt leverage," Ms. Nhan said.
"The sharp increase in bank bond interest rates is therefore not just a story about banks raising capital. It is also a signal that the economy is entering a new rebalancing phase, where medium and long-term capital is more accurately priced according to risk and market demand," Ms. Nhan said.
Source: https://znews.vn/thay-gi-ve-lan-song-trai-phieu-ngan-hang-post1662304.html
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