Banks continue to lead in capital mobilisation through bond channel

11-Jun-2021 Intellasia | BizLIVE | 5:02 AM Print This Post

The bond market report in May 2021 recently released by the Vietnam Bond Market Association showed that in May 2021, there were 46 separate corporate bond issuances in the domestic with a total issuance value of 28.410 trillion dong, a domestic bond public issuance with a total value of 500 billion dong (of Glexhomes Joint Stock Company) and an issuance of green bonds in the international market of BIM Real Estate Joint Stock Company with issuance value of 200 million US dollars.

In the group of companies that issued corporate bonds in the domestic, the group of banks took the lead with total issuance value of 18.485 trillion dong, while the group of real estate companies was in the second position with total issuance value of 4.950 trillion dong.

Thus, in the first two months of the second quarter, commercial banks issued a total of 33.674 trillion dong, including 5.574 trillion dong of bonds to increase Tier-2 capital, while most of the issued corporate bonds are on terms of two to three years at low interest rates from 3.7 4.2 percent per annum.

Some banks recorded large issuance of bonds, including Vietnam Prosperity Commercial Joint Stock Bank (VPBank) with 15 issuances and a total issuance value of 8.9 trillion dong, Tien Phong Commercial Joint Stock Bank (TPBank) with six issuances and a total value of five trillion dong, Asia Commercial Joint Stock Bank (ACB) with three issuances and a total value of five trillion dong, and Vietnam International Commercial Joint Stock Bank (VIB) with three issuances and a total value of four trillion dong.

Notably, out of the 28.4 trillion dong of corporate bond issuance in May, 76 percent of the bonds were issued without secured assets (mainly of banks and securities companies). Among the bonds in real estate, construction sectors, 26 percent of the bonds were issued without secured assets or secured by shares. The interest rates of real estate bonds mainly range from 9.5 11 percent per annum.

 

Category: Finance, Vietnam

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