Corporate bonds issuance in first six months reach over $8.3 billion

According to Bao Viet Securities Company (BVSC), the total issuance of corporate bonds in Vietnam in June 2021 reached over VND36.61 trillion ($1.6 billion), contributing to a total of VND190.66 trillion ($8.3 billion) of corporate bonds issued in the first half.

Numbers from Fiin Group show that the banking group accounted for the largest portion of the total issuance value in June (52 per cent) with around VND18.87 trillion ($820.43 million). Following is the real estate industry, accounting for 26 per cent with over VND9.370 trillion ($407.4 million). In H1, the real estate industry accounted for the largest proportion (42 per cent) with a total issuance of VND80.665 trillion ($3,5 billion), followed by banking with 29 per cent or VND55.244 trillion ($2.4 billion).

Enterprises with large deposits through the bonds in June include Trung Nam Dak Lak 1 Wind Power JSC (VND3.9 trillion or $169.57 million), LienVietPostBank (VND3.5 trillion, or $152.17 million), Orient Bank (VND3.5 trillion), Vietnam Construction and Import-Export JSC (VND2.2 trillion or $95.65 million) and ABBank (VND2.2 trillion). Compared to the same period last year, the total issuance value of corporate bonds in June fell by 44.38 per cent, BVSC commented.

However, accumulated in the first six months of 2021, the total value of corporate bond issuance reached over VND190 trillion ($8.26 billion), up 6.18 per cent.

After Decree No.81/2020/ND-CP came into effect from September 1, 2020, conditions for private bond issuance were tightened and then Decree No.153/2020 required investors in corporate bonds to be professional securities investors.

"These led to a significant decrease in corporate bond issuances. Therefore, in 2021, there will likely be fewer issuances than in 2020," said BVSC.