Businesses refrain from issuing bonds due to COVID-19 epidemic
Businesses refrain from issuing bonds due to COVID-19 epidemic
The volume of corporate bonds issued during February has reduced remarkably compared to the previous month due to the negative impacts of the COVID-19 epidemic on the stock market.
Illustrative image (Photo: VNA)
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According to a report released by SSI Securities Corporation on March 10, a total of 15 firms issued bonds in February worth a total 5.574 trillion VND (around 240 million USD). Real estate companies accounted for 72 percent of the bond value.
The number is only equal to 41 percent of the value of bonds issued in January.
For the two-month period, a total of 19.4 trillion VND worth of corporate bonds were issued with an average maturity of 4.75 years and interest rate of 10.07 percent per annum.
Real estate firms accounted for 60 percent of the total volume (nearly 11.64 trillion VND).
Only two banks issued bonds during January-February, which are the Asia Commercial Bank (ACB) with 230 billion VND worth of 10-year bonds, and the Tien Phong Commercial Bank (TPBank) with 552 billion VND worth of 7-year bonds.
The stock market had a difficult time in February with the benchmark VN-Index on the Ho Chi Minh Stock Exchange (HoSE) ending the month plummeting 5.81 percent to 882.19 points. The VN-Allshare and VN30 Indexes also dropped 2.97 percent and 1.96 percent, respectively, from January.
