Hanoi Stock Exchange (HNX) has just released an overview report on the corporate bond issuance situation as of September 8, 2023.
Accordingly, a total of VND122 trillion worth of corporate bonds were issued in the first 8 months of 2023. The peak of bonds issued was last August with a total value of up to VND53.2 trillion.
Real estate enterprises lead in bond mobilization volume in the first 8 months of 2023 with 57,000 billion VND (Photo TL)
Compared to the issuance volume in 2022, in the first 8 months of 2023, the total amount of bonds issued decreased by 60% over the same period. Of which, the amount of bonds issued by public enterprises accounted for 55 trillion VND, non-public enterprises accounted for 25.5 trillion VND and the group of LLCs accounted for 42 trillion VND.
Differentiation by industry group shows that in the first 8 months of 2023, the group of real estate companies issued nearly 57,000 trillion VND of corporate bonds, the highest among the industry groups included in the statistics.
Credit institutions followed with 48.7 trillion VND in bonds issued. Manufacturing companies issued only 9.5 trillion VND.
Compared to the issuance rate in 2022, the group of real estate companies mobilized 37% less bonds. The group of credit institutions sharply reduced the amount of bonds mobilized from nearly 127 trillion VND to only 48.7 trillion VND, equivalent to a decrease of 62%.
It is noteworthy that the amount of corporate bonds issued in the first 8 months of 2023 recorded 54% of secured bonds while the same period last year only reached 46.7%. The average issuance interest rate also reached 8.17%/year, higher than the 7.83%/year in the same period. The average bond term reached 3.76 years, higher than the 3.67 years in the same period last year.
Regarding the amount of corporate bonds bought back before maturity this year, public joint stock companies recorded a buyback volume of more than VND99.2 trillion, up 61% over the same period. The group of non-public enterprises bought back VND54.3 trillion, up 16%. The group of limited liability companies bought back VND12.3 trillion, up 13%.
According to economic experts, this is a result of the difficulties of the global economy. The economic recession has caused a decrease in the capital demand of enterprises, directly affecting the amount of additional corporate bonds issued. The low interest rate level and some macroeconomic fluctuations have also influenced businesses to increase the tendency to buy back bonds before maturity.
Source
Comment (0)