Bank bond market "hot" again

Accordingly, in the first 9 months of 2025, the amount of bank bonds issued increased sharply, accounting for 73% of the total amount of corporate bonds.

The banking group accounted for 73% of the total corporate bond issuance in the first 9 months of 2025. In the photo: Customers transact at Tien Phong Commercial Joint Stock Bank. *Photo: Quang Thai*

Banking group issued 313.2 trillion VND

According to information from the Vietnam Bond Market Association, in the first 9 months of 2025, the total value of corporate bond issuance (including private and public) reached about 430.8 trillion VND, up 35% over the same period last year. Of which, the banking group had an absolute advantage with 313.2 trillion VND, equivalent to 73% of the total issuance volume, up 38% over the same period.

In the third quarter alone, the market had 155 corporate bond issuances, including 154 domestic issuances with a total issuance value of VND156,100 billion, and one international issuance by Vietnam Prosperity Joint Stock Commercial Bank ( VPBank ) with a value of USD300 million.

Among the banks mobilizing bonds, the Military Commercial Joint Stock Bank (MBBank) mobilized the most, with 6,000 billion VND, followed by Loc Phat Commercial Joint Stock Bank (LPBank), Asia Commercial Joint Stock Bank (ACB ) and Ho Chi Minh City Development Joint Stock Commercial Bank (HDBank). The reason given by representatives of these banks is the need to supplement medium and long-term capital, bank bonds all have a term of over 3 years.

Thus, after two consecutive months of decline, bond issuance by banks recovered in September, reaching nearly 40.7 trillion VND, up 19.7% compared to August. All of this issuance was in the form of individual issuance. Along with that, early repurchase activities increased sharply, reaching nearly 35 trillion VND, up 31% compared to the previous month and 49% compared to the same period, equivalent to 86% of the value of new issuance in the month.

According to Fiin Group (a financial and business information services company), in the first 9 months, banks bought back VND158.5 trillion of bonds, up 37% over the same period in 2024, equivalent to 51% of the total new issuance value. Most of the bonds bought back were lots issued after June 30, 2024 to restructure the maturity and cost of capital.

Meanwhile, coupon interest rates (the annual fixed interest rate that bond issuers pay to bondholders based on the face value of the bond; usually paid periodically every 6 months or a year and does not change according to market interest rates) tend to increase again in the banking group, after hitting bottom at the beginning of the year, with the average interest rate increasing to 6.18% in the third quarter (compared to 5.81% in the second quarter of 2025 and 5.95% in the third quarter of 2024), the highest level in the past 6 quarters.

Most of the banks that successfully issued bonds in the third quarter recorded higher interest rates than the previous quarter, such as Vietnam Technological and Commercial Joint Stock Bank (TCB), ACB, MBBank, VPBank, Tien Phong Joint Stock Commercial Bank (TPBank), Orient Commercial Joint Stock Bank (OCB), Maritime Commercial Joint Stock Bank (MSB), Saigon - Hanoi Commercial Joint Stock Bank (SHB )...

Representatives of bond-issuing banks all shared the same opinion that banks' demand for capital mobilization through bonds is on the rise along with accelerating credit demand in the context of interest rates still needing to be kept stable to support the economy.

Corporate bond issuance value in 9 months of 2025. Graphics: Vietnam Bond Market Association

What to do to limit risks?

The question is: How to make the mobilization of bonds by banks truly effective and limit risks for the issuing banks as well as the economy? Experts explain that the legal corridor has been issued but there are still many loose points, especially in the management of capital use purposes after issuance. Therefore, the management agency needs to clearly understand the nature of the bond products that banks are issuing, to avoid "transformation".

For banks, it is necessary to avoid massive issuance without controlling the purpose and cash flow, because liquidity risks may increase when maturity comes. Banks should focus on issuing short-term bonds, transparent about the purpose and transferability, so that this tool can truly become a safe capital mobilization channel.

It is forecasted that the pressure to pay principal and interest on corporate bonds will temporarily decrease in November, but will skyrocket to VND45 trillion in December 2025, mainly in the real estate group. In the first half of 2026, this group alone is expected to have to pay VND54.8 trillion, accounting for 70% of the total principal obligations due, showing that cash flow pressure is still concentrated in this area.

Regarding the management of bond-issuing banks, the State Bank leader affirmed that this agency will continue to monitor commercial banks issuing bonds through legal regulations. The State Bank will also regularly control bond issuance activities to ensure banks comply with the law, including checking the purpose of capital use, issuance conditions, and information disclosure. At the same time, it will closely monitor banks, assess financial risks and activities related to bonds, to ensure the stability of the banking system.

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In the first 9 months of 2025, banks bought back VND158.5 trillion of bonds, up 37% over the same period in 2024, equivalent to 51% of the total new issuance value. Most of the bonds bought back were lots issued after June 30, 2024 to restructure the maturity and cost of capital.

Source: https://hanoimoi.vn/thi-truong-trai-phieu-ngan-hang-nong-tro-lai-721201.html