DNVN - New corporate bond issuance in January 2025 was less active, reaching only VND5,554 billion, down sharply by 93.2% compared to the previous month. Notably, the entire issuance volume was in the form of public issuance and mainly came from the banking group.
The corporate bond market report for January 2025 just released by FiinGroup shows that as of the end of January 2025, the entire market had more than VND 1.26 million billion worth of corporate bonds in circulation, down slightly by 1.1% compared to the end of December 2024 but continuing to increase slightly compared to the same period.
Of which, the total value of new issuance reached VND5.55 trillion in January 2025, down sharply by 93.2% compared to the previous month and down 27% compared to the same period due to the partial impact of the week-long Lunar New Year holiday from January 25-31, 2025.
Notably, all issuances during the month were public issuances and the majority were from banks. There were no private placements recorded in January.
In the primary corporate bond market, by the end of January 2025, the total value of corporate bonds in circulation reached nearly VND 1,264 trillion, down slightly by 1.1% compared to December 2024 due to a decrease in the scale of new issuance, repurchase and maturity.
Compared to January 2024, the total value of corporate bonds in circulation maintained a slight increase of 1.9% over the same period in 2023. Issuance activities were somewhat affected by the week-long Lunar New Year holiday from January 25-31, 2025.
By sector, banking continues to lead, accounting for 44% of the total market value of corporate bonds. This is followed by real estate (28.9%), tourism and entertainment (6.2%).
By type of issuance, private corporate bonds accounted for 89.1%, reaching more than VND 1,126 trillion, down 1.6% compared to the end of December 2024. In contrast, the value of publicly issued corporate bonds in circulation accounted for a small proportion (10.9%), reaching VND 137.7 trillion, but increased by 3.2% compared to December 2024 and increased by 11% compared to the same period in 2023.
In January 2025, there were a total of 4 corporate bond issuances, all in the form of public issuance. The average coupon interest rate reached 6.3%/year for the banking group and 8.5%/year for the non-banking group. Capital mobilization activities through public issuance recorded the highest level in the past 5 months, increasing 7 times compared to the previous month and increasing 2% compared to the same period last year.
The banking industry mobilized more than VND5.2 trillion through bond issuance in January 2025, accounting for 94.6% of the total value of newly issued corporate bonds in the whole market in the same month, but down sharply by 82.7% compared to December 2024. This is also the lowest issuance level of the industry in the past 10 months.
All issuances in January 2025 came from VietinBank (stock code: CTG) and BVBank (stock code: BVB), of which CTG accounted for the largest proportion (76% of the whole industry) with a total issuance value of VND 4 trillion. CTG's average coupon interest rate is 5.8%/year, with a bond term of 8-10 years.
In January 2025, corporate bond issuance activities decreased sharply in the non-bank group, with the total new issuance value reaching only 300 billion VND, the lowest level in more than a year.
According to FiinGroup, compared to the bustling issuance level in December 2024 (total value of more than VND 37 trillion), the sharp decline in January may partly come from the seasonal effect, when the long Lunar New Year holiday (January 25 - January 31, 2025) delayed the capital mobilization progress.
Notably, apart from the securities industry, no new issuance was recorded. The lack of new issuance in the real estate industry – an industry that used to account for a large proportion in previous months – continues to reflect the challenges in raising capital through the corporate bond channel.
The entire value of new issuance in January 2025 of the non-bank group belongs to DNSE Securities Company and is implemented through public issuance.
This is the first batch of corporate bonds issued by DNSE, with an issuance value of VND 300 billion, coupon interest rate of 8.5%/year and a term of 2 years.
Thu An
Source: https://doanhnghiepvn.vn/kinh-te/chung-khoan/trai-phieu-doanh-nghiep-thang-1-2025-phat-hanh-moi-giam-hon-93/20250221112031042
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