The private corporate bond market has grown significantly after one year of operation.

The market size is growing rapidly.

On July 19, 2023, the TPDNRL trading system was officially launched at HNX. At the time of launch, the market had 19 TPDNRL codes from 3 issuers registered for trading with a total registered trading value of VND 9,060 billion.

By the end of 2023, the private corporate bond trading system had 887 bond codes from 249 issuers registered for trading, with a value of VND 617,610.1 billion.

As of June 30, 2024, the market size had reached 997 non-performing loan (NPL) codes from 259 issuers, with a registered trading value of nearly VND 706,236.3 billion.

The TPDNRL trading member system also grew rapidly from 5 members on the market's opening day to 36 trading members by the end of 2023, and by June 30, 2024, the TPDNRL trading member system had 48 members, including 44 securities companies and 4 commercial banks. Of these, 45 out of 48 members traded on the HNX trading system.

Liquidity of Treasury bonds has improved significantly, with the average trading value in the first month of market opening reaching VND 250.6 billion/session, rising to VND 1,880.6 billion/session by the end of 2023, and reaching VND 4,092.9 billion/session by the end of June 2024.

Statistics on TPDNRL transactions from the time the trading system became operational until June 30, 2024, show that the most traded bonds include bonds of credit institutions, accounting for 45.71% of the total market transactions, equivalent to a transaction value of VND 324,246 billion; and bonds of real estate companies, accounting for approximately 30% of the market transaction value, equivalent to a transaction value of VND 212,577 billion.

A developed secondary market also facilitates businesses in raising capital in the primary market, contributing to the healthy and sustainable development of the primary market for corporate bonds.

In the domestic market, from July 19, 2023 to June 30, 2024, there were 118 successful bond issuances with a value of VND 351,739 billion. The issuers were mainly from the credit sector, accounting for 63%, and real estate companies accounted for 24.9% of the total issuance value. The average cost of capital for the entire market reached 7.52% per year, with bonds from credit institutions having the lowest interest rate at 6.01% per year, followed by the trade and service sector at 10.76%, and companies in other sectors at 10.87%.

Issuers also carried out early redemptions, with the total value of bonds repurchased by businesses reaching VND 182.9 trillion.

Key achievements

The launch of the TPDNRL market has played a crucial role in bringing transparency to the market and reducing risks for investors, especially individual investors, in their transactions.

Investors can conveniently and safely trade TPDNRL (Treasury Bonds) through the Stock Exchange: All secondary transactions are centrally managed and executed through the Stock Exchange, and settlement is carried out through the Securities Depository Center, ensuring transaction and settlement security. Therefore, investors can trade TPDNRL more conveniently and safely, and their rights are better protected.

Investors also gain a better understanding and increased responsibility in their transactions. Other market participants, such as issuers and advisory firms, also gain a clearer understanding of their responsibilities when participating in the market.

Transparent market information and a comprehensive database on corporate bonds have been established: Previously, secondary investors could only access information through distribution systems and sales brokers, and often the information was not fully conveyed. Now, with a dedicated corporate bond information website, investors have the right and ability to access all information about bonds comprehensively before making investment decisions.

All information disclosed by bond-issuing companies, including pre-issuance information, unusual information disclosures, information disclosures regarding convertible bonds, bonds with warrants, early redemption of bonds, bond swaps, corporate bond issuance results, etc., is compiled and publicly available on the dedicated information page on corporate bonds at https://cbonds.hnx.vn/.

Regulatory bodies also have more complete information and a more comprehensive view of TPDNRL from issuance in the primary market to trading in the secondary market.

The results achieved in the past year in the bond market have realized the government 's and regulatory authorities' policy of resolutely bringing the issuance and trading of bonds under centralized management.

To continue developing the market in line with the direction of the Government and the Ministry of Finance , in the coming time, HNX will coordinate with relevant units to further improve the technological infrastructure of the trading system, better meeting the requirements of the market; at the same time, complete and upgrade the information page on corporate bonds to comply with Decree 65/2022/ND-CP and Circular 30/2023/TT-BTC.

The corporate bond market is considered to play a crucial role in the economy , serving as an effective medium- and long-term capital mobilization channel for the sustainable development of businesses. It also contributes to diversifying the financial market, ensuring a harmonious and balanced capital market structure, and reducing excessive dependence on bank credit.

Source: https://nhandan.vn/thi-truong-trai-phieu-doanh-nghiep-rieng-le-lon-manh-sau-1-nam-van-hanh-post821889.html