Corporate bond issuances more than double in seven months

August 05, 2024 | 17:10

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Companies issued 161.5 trillion VND (6.43 billion USD) worth of bonds during January-July, or 2.6 folds higher than the same time last year, the Ministry of Finance (MoF) said on August 5.

Corporate bond issuances more than double in seven months

Credit institutions account for 67.5 per cent of the value of the issued bonds. (Photo: VNA)

Hanoi - Companies issued 161.5 trillion VND (6.43 billion USD) worth of bonds during January-July, or 2.6 folds higher than the same time last year, the Ministry of Finance (MoF) said on August 5.

Credit institutions accounted for 67.5 per cent of the value, property enterprises some 24 per cent, and businesses of other industries 8.5 per cent.

As much as 24 trillion VND worth of covered bonds was issued during the p, with those by realty firms making up of 84.4 per cent.

Some 88.8 trillion VND worth of bonds was redeemed in the period, a 36 per cent fall from a year earlier.

According to the Hanoi Stock Exchange, the total transactions in the secondary market amounted to more than 566.85 trillion VND, with each valued at around 4 trillion VND.

Earlier, a representative from VNDirect securities company forecast that bond maturity pressure will cool down in Q3 before heating up in the next quarter. The total value of bonds maturing in Q3 is expected at some 38.5 trillion VND, falling 27.2 per cent quarter-on-quarter. The property sector was said to account for the largest share of 49 per cent, followed by the banking sector with 26.7 per cent.

The MoF said it will continue combining macro-economic policies with credit growth and property recovery ones to ensure transparency in the corporate bond market, thus making it develop in a safer, healthier and more sustainable manner.

More vibrant corporate bond market anticipated

With bright signs on the horizon right, experts and businesses expect the corporate bond market to heat up from this year's second quarter.

Bond issuances surge despite lack of credit ratings

A report by the Vietnam Bond Market Association shows that in the first four months of this year, the total value of corporate bond issuances amounted to $1.5 billion and included six initial public offerings and 30 private placements.

By VNA

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