Banks boost bond issuance in the second quarter

17-Jun-2020 Intellasia | Vietnam Finance | 6:02 AM Print This Post

VietnamFinance statistics show that in April and May 2020, the total value of corporate bond issuance in Vietnam reached over 57 trillion dong, about 60 percent higher than the first quarter of 2020, implying that corporate bonds clearly prospered, thanks to the pull from the banking group.

Specifically, credit institutions (banking group) issued nearly 26 trillion dong of corporate bonds, accounting for 45.3 percent of the total value of corporate bonds issued in the market. Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV), Vietnam Prosperity Joint-Stock Commercial Bank (VPBank) and HCM City Development Joint Stock Commercial Bank (HDBank) are the top three banks with the value of 9 trillion dong, 7 trillion dong and 4 trillion dong respectively.

Following the banking group, real estate sector issued nearly 14.4 trillion dong of corporate bonds, accounting for 25.2%. Next is the service group with over 7 trillion dong, equivalent to 12.3%. The remaining groups are construction (5.1%), manufacturing (2.4%), securities (1%) and others (8.7%).

Previously, aggregated data in the first quarter of 2020 showed that the total amount of corporate bond issued was about 35 trillion dong, of which up to 55 percent came from the real estate. Banking group accounted for only 2.8 percent with the value of less than one trillion dong.

Accumulated in the first five months of 2020, the total amount of corporate bond issued is about 92 trillion dong; in which, real estate led with nearly 34 trillion dong (accounting for 36.6%), followed by banking with 26.9 trillion dong (29%), service group with over 11.6 trillion dong (12.5%), the rest are construction (6.5%), securities (1.9%), manufacturing (1.6%) and others (11.9%).

 

Category: Finance, Vietnam

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