Banks and real estate companies continue to mobilise via bonds

26-Feb-2020 Intellasia | NDH | 6:02 AM Print This Post

MB Securities (MBS) has just released a debt market report, noting many corporate and bank bond issuances. From the second half of December 2019, Bac A Commercial Joint Stock Bank (Bac A Bank) led in the value of bond issuance in the banking group with 1.45 trillion dong. Bonds have terms of two to five years and bear interest rates of 6.6-7.2 percent per annum, payable once every 12 months.

MSB ranked second with 400 billion dong of bonds issued, a term of three years and an interest rate of seven percent. Some banks also announced the offering including Tien Phong Commercial Joint Stock Bank (TPBank) of 374 billion dong, Southeast Asia Commercial Joint Stock Bank (SeABank) 250 billion dong and Asia Commercial Joint Stock Bank (ACB) 230 billion dong.

Businesses operating in the real estate segment have recently mobilised capital via bonds such as Thaco to offer to complete two trillion dong for four-year term, with an interest rate of 9.8 percent per year in mid-January. Sovico issued 1.4 trillion dong of three-year bond with interest rate of 11 percent per year.

Wonderland Real Estate issued 500 billion dong of bonds, Thien Duong Bay offered 166 billion dong of one-year bonds, Sovico issued 1.4 trillion dong of three-year bonds with interest rates of 11 percent per year.

Earlier, the January bond market report of SSI Securities Research CentreSSI Research recorded a total of corporate bond issuance in January 2020 of 13.374 trillion dong. The group of real estate businesses issued 7.364 trillion dong, equivalent to 55 percent of the total issuance. Average interest rate of the whole market was 10.03 percent per year and the average term of 4.98 years.

On the buying side, individual investors bought 2.354 trillion dong, of which except 240 billion dong of MBS bonds and 255 billion dong of TPBank bonds while the rest were bought from bonds of real estate businesses.

Commercial banks and securities companies bought 2.733 trillion dong bonds in January including VPBank that bought all 1.598 trillion dong of bonds from City Garden JSC and 125 billion dong of bonds from Cu Lao Cham Tourism and Investment JSC. Techcombank and TCBS bought 950 billion dong of VinFast bonds. MB bought 60 billion dong of bonds from Phu Tai Joint Stock Company. Foreign organisations bought 98.2 billion dong, and the rest were recorded as domestic organisations.


Category: Finance, Vietnam

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