Corporate bonds issued “hot”
The above information was announced by the Hanoi Stock Exchange, in which the average term is 3.94 years, the actual number of issuance is more than 1,350 times, 244% higher than that of the first 8 months of last year.
Particularly in August 2020, there were 37 businesses issuing bonds with a total value of 38,390 billion dong, up 93% over the previous month, up 230% compared to the beginning of the year, 44% higher than the same period last year.
While the first month of 2020, the type of businesses that issue bonds is mostly “old” faces such as banking, securities companies, real estate, in the following months, the bond market is also contributed by many businesses in services, construction, manufacturing, non-bank credit institutions …
Particularly in August, the top issue belonged to the real estate group (30.39%), followed by credit institutions (26.14%), service businesses (17.78%). .
In addition to large and familiar enterprises such as Novaland, Sovico, Vinsmart, Masan …, in August, the bond market also discussed enthusiastically about Xich Lo Do Trading and Service Co., Ltd. – a unit whose main business is cutting hair and washing hair, but raised 738 billion VND through issuing corporate bonds, while the charter capital was only 20 billion VND. Revenue in 2019 is only slightly more than 2 million VND.
SSI Securities Company assessed, Decree 81 amendments Effective September 1, 2020, creates a stricter legal framework for private bond issuance, because impose higher requirements on issuers and intermediaries.
“The corporate bond market in the third quarter of 2020 may rise hot but cool in the fourth quarter of 2020”, said SSI.
The difference between the interest rates corporate bonds and deposit interest rates continue to expand along with large corporate bond stocks due to the strong growth in issuance size from the beginning of 2019 up to now and the increasing participation of banks and securities companies will make market corporate bonds Secondary will remain active in the second half of 2020.
The Vietnamese corporate bond market has risen sharply
According to the statistics of SSI Securities Company, in the first half of 2020 the market corporate bonds an increase of about 15.6% compared to the end of 2019, to 791,000 billion VND, equivalent to about 12.9% of GDP.
Vietnam, China and Malaysia are Asian countries with the strongest growth in corporate bond markets.
At present, the size of the corporate bond market as a percentage of GDP in Vietnam is far ahead of Indonesia, surpassing the Philippines, but still quite far from Thailand’s 23% GDP.
Compared to other capital mobilization channels in Vietnam, the corporate bond channel is still quite modest in size. The economy still relies heavily on bank credit, the total credit scale as of June 30, 2020 is 8.48 million billion dong, equivalent to 138.5% of GDP and 10.75 times higher than the corporate bond channel.
On average for the whole market, the interest rate of corporate bonds issued in the second quarter of 2020 is 8.89% / year, down -151 basis points compared to the previous quarter, although the average bonding term is 3.71 years. – higher than the level of 3.64 years of the quarter 1-2020.