Corporate bond market cools down

21-Nov-2020 Intellasia | VnEconomy | 6:02 AM Print This Post

The Hanoi Stock Exchange (HNX) has just announced the issuance of corporate bonds on the HNX in October 2020.

According to the date of private corporate bond issuance disclosed through the HNX, in October 2020, 20 businesses successfully issued 90 private bond issuances out of a total 44 registrations. The successful issuance value reached 9.5 trillion dong, accounting for 62.7 percent of the total registered issuance value, down by one trillion dong compared to the issuance value in September.

In October, the bond repurchase from bondholders was carried out quite often. Specifically, there were 117 repurchases with a total repurchasing value of over 5.430 trillion dong.

Since the statistical data from the HNX were started to be recorded (August 2019), October 2020 is the month with the second lowest issuance value after 15 statistical months. This value has declined by up to 82 percent compared to the months with the largest issuance value (December 2019 with 54.855 trillion dong), and dropped by 43 percent compared to the same period of last year. This is the second consecutive month of decline after Decree 81/2020/ND-CP took effect.

In the first 10 months of 2020, there were 1,838 corporate bond issuances out of the total 2,265 registrations. The successful issuance value in the period was 326 trillion dong, accounting for 66 percent of the total registered issuance value in 10 months. The number of businesses successfully performed their issuances in the first 10 months of 2020 was 223 units.

Credit institutions recorded the largest issuance scale in October, accounting for 38.99 percent of the total successful issuance value, with an average issuance term of 6.08 years. The issuance value of real estate companies accounted for 32.29 percent of the total issuance value with average issuance term of 4.61 years; followed by the issuance value of businesses in manufacturing sector which accounted for 8.26 percent with an average term of 9.79 years, of construction businesses which accounted for 3.16 percent with an average term of 5.33 years, of service businesses which accounted for 2.38 percent with an average term of 2.69 years, and of other businesses which accounted for 14.92 percent with an average term of 3.81 years.

Particularly, in October 2020, a business Phu My Hung Development Company Limited successfully issued 80 million US dollars of corporate bonds to the international market, equalling to the registered value, with an average issuance term of five years.

 

Category: Stocks, Vietnam

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