Corporate bond issuance volume in Q2 decreased by 92.4% compared to the same period
According to VNDIRECT's corporate bond market synthesis report, in the second quarter of 2023, the corporate bond market is still in a gloomy state.
In the second quarter alone, only 12 corporate bond issuances were successfully organized domestically with a total issuance value of VND8,736 billion. The issuance volume decreased by more than 69.2% compared to the first quarter of 2023 and decreased by 92.4% compared to the same period last year.
Corporate bond market in Q2 2023 decreased sharply (Photo TL)
Regarding the amount of corporate bonds repurchased during the period, the Banking group repurchased VND 39,842 billion of bonds before maturity, accounting for 63.7% of the total value of corporate bonds repurchased before maturity in the second quarter of 2023.
Compared to the first quarter of 2023, the total amount of corporate bonds bought back by the Banking group was only VND 330 billion.
According to VNDIRECT, the reason may be because credit demand in the first months of the year is often weaker. In addition, the sharp decrease in deposit interest rates and improved liquidity in the banking system have helped this group buy back their bonds before maturity.
Many businesses face cash flow difficulties and are late in paying interest and principal on bonds.
The decline in corporate bond issuance partly reflects the gloomy picture of this market. In the context of the real estate market continuing to be sluggish, many businesses are facing difficulties in cash flow as well as the ability to access capital. This has caused the number of businesses to delay in paying interest and principal on bonds to increase in the second quarter.
Specifically, according to the HNX report, as of June 26, 2023, there were 59 enterprises on the list of enterprises that were late in paying interest or principal on corporate bonds. In this group of enterprises, the total outstanding corporate bond debt is estimated at VND 159.5 trillion, accounting for 14.6% of the total outstanding bond debt in the whole market.
In 2023 alone, about VND43.8 trillion of corporate bonds of the above entities will mature, accounting for 19.6% of the total maturity value of the entire market for the year.
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