Medium and long-term bonds issued by banks increased sharply to reach 96.2 trillion VND

Công LuậnCông Luận28/07/2024


According to the market report of MBS Securities, since the beginning of the year, banks have issued a large amount of bonds, mainly medium and long-term bonds. The average interest rate of bonds is 5.4%/year, with an average term of 4 years.

Medium and long-term bonds issued by banks increased by 140% in the first half of 2024, figure 1

The total value of bonds issued by the banking sector in the first half of the year reached VND96,200 billion, up 140% over the same period. (Photo TL)

The total issuance value reached VND96.2 trillion, up 140% over the same period. The amount of bonds issued by banks accounted for 65% of the total value of bonds on the market. Notably, the top bond issuer of up to VND17 trillion belonged to a bank with outstanding real estate loans of up to VND194 trillion.

The fact that banks are increasing their capital mobilization by issuing bonds shows signs of increasing credit demand.

According to data from the State Bank, as of the end of June, economic credit reached 14.3 million billion VND, an increase of 6% compared to the end of 2023. Credit demand is expected to continue to increase by 14% for the whole year.

Compared to other sectors, bank bonds are assessed by experts to have a higher level of safety. The issuance period is usually medium and long term, averaging 3-5 years, with an average interest rate of 5-6%.



Source: https://www.congluan.vn/trai-phieu-trung-va-dai-han-do-ngan-hang-phat-hanh-tang-140-trong-nua-dau-nam-2024-post305242.html

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