Bank bonds dominate

Specifically, the market recorded 33 issuances with a total value of VND 31,300 billion - down 62% compared to the previous month and down 31% compared to the same period in 2023.

Statistics from August 1 to 20 by MBS Research show that the total value of successfully issued corporate bonds is estimated at over VND32,000 billion, down 8% over the same period. Most corporate bonds are still issued by banks, accounting for over 90%. Notable issuances include: Agribank with VND10,000 billion, 120-month term, 6.7% interest rate; OCB with VND5,000 billion, 24-36-month term, 5.6% interest rate; MBBank with VND4,000 billion, 36-month term, 5.5% interest rate...

Since the beginning of the year, the total value of corporate bonds issued has reached more than VND220,800 billion, up 50.4% over the same period. The average corporate bond interest rate in the first 8 months of 2024 is estimated at about 7%, lower than the average of 8.3% in 2023. In particular, banks are the industry group with the highest value of corporate bond issuance with about VND159,200 billion - up 163% over the same period, accounting for 72%; with an average interest rate of 5.5%/year and an average term of 4.3 years. Banks with the largest value issued since the beginning of the year include:ACB with VND23,800 billion, MBBank VND23,300 billion, Techcombank VND17,000 billion.

Meanwhile, real estate enterprises issued a total of VND 38,200 billion in bonds (same period in 2023 was VND 60,000 billion), accounting for 17%. The average interest rate of real estate bonds remains at 12%/year, with an average term of 2.5 years. Enterprises issuing the largest value include: Vinhomes with VND 12,500 billion, Vingroup VND 10,000 billion, Hai Dang Real Estate Investment and Development Company Limited VND 5,400 billion...

According to FiinRatings experts, to meet the rapid credit growth since June while not being able to increase charter capital, credit institutions need to continue to consolidate medium- and long-term capital sources over 3 years through bond issuance activities.

MBS Research experts predict that corporate bond issuance will be more active in the fourth quarter of 2024 when capital demand of enterprises recovers, the real estate market begins to warm up, and the need to expand production and business is actively following the economic recovery. Banks will also continue to promote the issuance of Tier 2 capital to meet lending needs.

Source: https://nld.com.vn/trai-phieu-ngan-hang-chiem-ap-dao-196240825185001617.htm