Bank bonds dominate.

Specifically, the market recorded 33 issuances with a total value of VND 31,300 billion - a decrease of 62% compared to the previous month and a decrease of 31% compared to the same period in 2023.

Statistics from MBS Research from August 1st to 20th show that the total value of successfully issued corporate bonds is estimated at over 32,000 billion VND, a decrease of 8% compared to the same period last year. The majority of corporate bonds are still issued by banks, accounting for over 90%. Notable issuances include: Agribank with 10,000 billion VND, 120-month term, interest rate 6.7%; OCB with 5,000 billion VND, 24-36 month term, interest rate 5.6%; MBBank with 4,000 billion VND, 36-month term, interest rate 5.5%...

Cumulatively from the beginning of the year, the total value of corporate bonds issued reached over VND 220,800 billion, an increase of 50.4% compared to the same period last year. The average interest rate on corporate bonds in the first eight months of 2024 is estimated at around 7%, lower than the average of 8.3% in 2023. Among the sectors, banks had the highest value of corporate bond issuance with approximately VND 159,200 billion – an increase of 163% compared to the same period last year, accounting for 72% of the total; with an average interest rate of 5.5% per year and an average maturity of 4.3 years. The banks with the largest issuance values ​​from the beginning of the year to date include:ACB with VND 23,800 billion, MBBank with VND 23,300 billion, and Techcombank with VND 17,000 billion.

Meanwhile, real estate companies issued a total of VND 38,200 billion in bonds (compared to VND 60,000 billion in the same period of 2023), accounting for 17% of the total. The average interest rate on real estate bonds remained at 12% per year, with an average maturity of 2.5 years. The companies issuing the largest value included: Vinhomes with VND 12,500 billion, Vingroup with VND 10,000 billion, Hai Dang Real Estate Investment and Development Company Limited with VND 5,400 billion…

According to experts at FiinRatings, to meet the rapid credit growth since June while not yet having increased charter capital, credit institutions need to continue strengthening medium- and long-term capital sources (over 3 years) through bond issuance.

MBS Research experts predict that corporate bond issuance activity will be more vibrant in Q4 2024 as corporate capital demand recovers, the real estate market begins to warm up, and the demand for expanding production and business is actively following the economic recovery. Banks will also continue to boost Tier 2 capital issuance to meet lending needs.

Source: https://nld.com.vn/trai-phieu-ngan-hang-chiem-ap-dao-196240825185001617.htm