Bond market to rebound in 2nd half of 2024: KBSV

Mar 22nd at 07:50
22-03-2024 07:50:19+07:00

Bond market to rebound in 2nd half of 2024: KBSV

After a sluggish performance in the first months of the year, the bond market is expected to rebound in the second half of 2024, said experts.

An employee conducts a transaction at a bank's office. — VNA/VNS Photo

The corporate bond market continued its bearish trend in February after only VNĐ1.16 trillion (US$47.2 million) worth of bonds were released, marking a significant decrease of 45.8 per cent from the previous month.

The average maturity period for these bonds was 2.87 years.

There were just three private placement issuances by three companies operating in the construction, seaport transportation and service trading sectors.

The poor performance of the corporate bond market in the first two months of the year can be attributed to various factors, primarily the reinstatement of certain provisions outlined in Decree 65.

These provisions imposed stricter regulations on corporate bond issuance and dampening market activity.

However, KBSV Securities Company believes that for the latter half of the year, the volume of bond issuance is likely to increase as the economy gains momentum, the real estate market recovers and the prevailing constraints in the corporate bond market gradually diminish.

The pressure on the market has intensified as the volume of bonds due sees a significant increase. In March, about VNĐ23.07 trillion worth of corporate bonds will mature, surging 372 per cent from the previous month.

Among these bonds, the real estate sector accounts for 63 per cent, followed by the service trading sector at 10 per cent and the construction industry at 9 per cent.

For the whole year 2024, it is expected that around VNĐ279 trillion worth of bonds will mature, with real estate corporate bonds making up the majority of over VNĐ115 trillion. It is followed by financial institutions with over VNĐ81 trillion.

These figures do not include bonds that may undergo a second round of maturity after receiving extensions. Consequently, the actual pressure on bond maturities this year is expected to be higher than the reported numbers suggest.

The value of transactions involving secondary corporate bonds and repurchasing activities continues to decline.

Nonetheless, KBSV predicts that repurchasing activities will improve in the upcoming months as business conditions show signs of improvement. The low-interest-rate environment serves as an additional incentive for companies to increase their repurchasing of bonds that were initially issued at higher interest rates. 



Corporate bond market remains stagnant in early 2024

The corporate bond market has remained stagnant in the first few months of 2024 due to a series of scandals and legal issues, particularly the arrest of the...

Nearly VNĐ28.2 trillion worth of G-bonds raised in February

The Hanoi Stock Exchange (HNX) held 12 auctions of government bonds with a total volume of nearly VNĐ28.2 trillion (US$1.1 billion) in February.

Significant pressure on corporate bonds maturing in 2024

The pressure of corporate bonds maturing in 2024 remains significant, with many businesses needing to pay trillions of Vietnamese đồng in bonds that are due for...

Saigon Glory successfully extends $408 million in bonds

Saigon Glory Co Ltd has successfully negotiated an extension for ten bond lots worth a total of VNĐ10 trillion (US$408 million) with the bondholders, according to...

Public offerings key to promoting corporate bond market: experts

To promote the professional corporate bond market, one solution is to focus on widespread public offerings of corporate bonds rather than private placements, said...

Vietnam’s corporate bond market could grow to US$100bn: Finance Minister

The Ministry of Finance is expected to establish a separate bond market, strengthen inspection and auditing, and create conditions for businesses to raise capital.

​Vietnam raises $314 mln in govt bond auction: bourse filing

Vietnam raised 7.67 trillion dong ($314 million) out of 8 trillion dong worth of government bonds offered at an auction on Wednesday, up from the $122.9 million...

State Treasury to auction VNĐ400 trillion worth of government bonds

The State Treasury has announced that it plans to raise VNĐ400 trillion (over $16.25 billion) worth of government bonds via auctions on the Hanoi Stock...

Corporate bond market stays quiet at the beginning of 2024

The corporate bond market is expected to remain relatively sluggish until the end of the first quarter of 2024, as conditions for issuing and trading corporate...

​Vietnam raises $132.61 mln in govt bond auction

Vietnam raised 3.253 trillion dong ($132.61 million) selling government bonds at an auction on Wednesday, down from last week's $184.5 million, the Hanoi Stock...


Back To Top