Companies issue $7.7b worth of bonds in nine months

Companies issue $7.7b worth of bonds in nine months

The nine-month value is equal to nearly 80 per cent of the total bond issuance value in 2018.

The figure is also lower than the total registered value of nearly VND276.9 trillion (nearly $12 billion), which means nearly VND98 trillion bonds were unsold.

In September, 28 companies made 60 issuances with total capital raised of VND19.4 trillion (excluding international bond issues). Most bonds were three-year term with total value of VND13.5 trillion.

Interest rates of bonds issued in September ranged between 6 per cent and 11 per cent per annum.

Banks were the main player in the bond market with total issuance value of VND14.1 trillion in September, accounting for 72.78 per cent of total market value. Real estate companies followed with VND965 billion (4.97 per cent) and securities firm with VND413 billion (2.13 per cent).

Bonds issued by banks also had the lowest interest rate, averaging only 6.71 per cent per year.

Some companies with big issuance value in September included Techcombank (VND5 trillion), Orient Commercial Joint Stock Bank (VND1.7 trillion), Asia Commercial Bank (VND1.6 trillion), Sai Gon-Ha Noi Bank (VND1.45 trillion), Sovio Holdings (VND1.1 trillion), Ho Chi Minh Development Bank (VND912 billion), Phu My Hung Development Corporation (VND900 billion) and Vietravel (VND700 billion).

According to a report by Saigon Securities Inc, instead of focusing on two- or three-year term bonds as in previous months, in the last two months banks had been stepping up to issue bonds with longer maturity such as five-year, seven-year and 10-year terms.

Longer-term bond issuers included Vietinbank, Bank for Investment and Development of Vietnam (BIDV) and Southeast Asia Commercial Joint Stock Bank (SeABank).

In September, Vietnam Prosperity Bank (VPBank) was the only enterprise to issue bonds internationally worth $300 million.

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