Corporate bond market quiet in Feb

Corporate bond market quiet in Feb

Only one successful private placement was recorded in February, with a value of VNĐ80 billion (US$3 million), a 79.1 per cent decline from the prior month.

Private bonds maturing in March are expected to soar compared with the combined volume over the first two months of the year. — VNA/VNS Photo

The corporate bond market showed muted activity in February, with issuance concentrated at a very low level and buyback activity remaining constrained, according to analysis from VNDirect Securities.

Data compiled by VNDirect showed that only one successful private placement was recorded in February, with a value of VNĐ80 billion (US$3 million), a 79.1 per cent decline from the prior month. 

On a year-to-date basis, private placement issuance totalled VNĐ460 billion for the first two months of 2026. 

The securities firm noted that this pattern is consistent with the market's seasonality, as issuance typically slows in the early part of the year. By comparison, the same two-month period in 2025 saw no private placements at all.

The lone placement in February came from a real estate company, carried a coupon of 11.5 per cent per annum and had a three-year tenor.

VNDirect said that the relatively small scale of the deal reflects issuer caution toward raising funds through bond markets, given the still unfavourable market conditions.

On the redemption front, early buyback activity for private bonds remained limited.

The total value of private bonds repurchased in February amounted to just over VNĐ2.1 trillion, up 45.4 per cent month-on-month but down 45.5 per cent year-on-year. 

The real estate sector continued to account for the largest share of buybacks, representing nearly VNĐ1.3 trillion or 61.1 per cent of total repurchased volume.

VNDirect's analysts further warned that maturity pressure is set to rise meaningfully in March 2026. They estimate that private bonds maturing in March will total approximately VNĐ9.8 trillion, a sharp increase compared with the combined volume due over the first two months of the year. 

This front-loading of maturities is expected to continue in subsequent months, placing greater demands on issuers' liquidity management and abilities to refinance or restructure cash flows. 

Bizhub