Corporate bonds: 180 trillion VND in new issuances, but 190 trillion VND repurchased before maturity.

ANTD.VN - In the first 10 months of the year, businesses issued 180.4 trillion VND in bonds but repurchased 190.7 trillion VND before maturity. The remaining 61.6 trillion VND will mature in the last three months of the year.

According to the Ministry of Finance , in the first 10 months of the year, 70 enterprises issued corporate bonds with a total volume of VND 180.4 trillion, a decrease of 45.1% compared to the same period in 2022.

Notably, according to the Ministry of Finance, the majority of bond issuance volume was concentrated in the period after Decree 08/2023/ND-CP came into effect (March 5, 2023), totaling VND 179.5 trillion.

In October alone, the issuance volume was 41 trillion VND, an increase of 17 trillion VND compared to September (23.4 trillion VND).

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The volume of corporate bond issuance was lower than the volume of bond repurchases.

While bond issuance has decreased sharply, businesses have significantly increased their early bond buybacks. Since the beginning of the year, businesses have repurchased bonds worth up to VND 190.7 trillion, exceeding the total issuance and representing a 30.2% increase compared to the same period last year.

In October 2023 alone, businesses repurchased approximately 14.2 trillion VND worth of shares ahead of schedule.

According to the Ministry of Finance, the main investors purchasing privately placed corporate bonds in the primary market during the first 10 months of 2023 were institutional investors, accounting for 95% of the total issuance volume (primarily banks, accounting for 61%), while individual investors accounted for 5%.

In the secondary market, as of June 30, 2023, individual investors held approximately 28.5% of the total outstanding private corporate bonds (equivalent to about VND 285.6 trillion).

Regarding maturities, the Ministry of Finance stated that the volume of maturing loans in the last three months of 2023 was 61.6 trillion VND.

To further stabilize and develop the corporate bond market, the Ministry of Finance stated that it has reported to the Government leadership on a comprehensive set of management solutions. The main groups of solutions include: implementing a synchronized approach to macroeconomic policy management, controlling inflation, and promoting the disbursement of public investment capital; and addressing difficulties and stabilizing the real estate market.

Monitor the payment of corporate bonds due and strengthen information and communication efforts; organize the market and improve the effectiveness of management and supervision; conduct a comprehensive review to improve legal regulations in the Securities Law, the Enterprise Law and related laws;

Research into policies to encourage credit rating, promote the roadmap for upgrading the stock market, develop the institutional investor system; strengthen resources and personnel for inspection and auditing agencies of the State Securities Commission and the State Bank of Vietnam.

Regarding the handling of violations, recently, the Ministry of Finance has received complaints from investors related to the SCB Bank - Van Thinh Phat Group case, and complaints from people who deposited savings and were offered corporate bonds by some banks.

These petitions are currently being handled by the State Securities Commission under the direction of the Ministry's leadership.

"Regarding this issue, from 2019 to the present, the Ministry of Finance has issued six documents requesting the State Bank of Vietnam to strengthen management and supervision of commercial banks in the distribution, repurchase commitments, and provision of services related to corporate bonds, and to regularly coordinate in providing information on the corporate bond market situation," the Ministry of Finance stated.

At the same time, the Ministry of Finance also coordinated with the Ministry of Public Security to forward the investors' complaints.

Currently, the Ministry of Public Security has concluded its investigation into the Tan Hoang Minh Group case and is investigating the cases of SCB Bank and Van Thinh Phat Group.

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