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Monday, June 17, 2024

Bond buybacks up 5.8% y-o-y

The Saigon Times

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HCMC – Corporate bond buybacks before maturity had amounted to VND230.2 trillion in the year to December 25, up by 5.8% year-on-year, according to the Ministry of Finance.

In contrast, bond issues had dropped 27% year-on-year, with 78 companies issuing bonds worth VND245.9 trillion. Institutional investors, primarily commercial banks, had bought the majority at 93.2%, while individual investors had constituted the remaining 6.8%.

The corporate bond market began the year on a low note, with almost no bonds issued in January. However, Government measures, such as the issuance of Decree 08/2023/ND-CP in March, have propped up the bond market. This decree allows issuing organizations to extend coupon payments by up to two years and settle debt by use of their assets.

In July, a corporate bond trading system was launched to facilitate the buying and selling of corporate bonds for professional investors. On the first day of trading, the corporate bond market saw active participation, with four bond codes traded by 39 investor orders. The total trading volume for the entire market exceeded five million bonds with a value of over VND1.78 trillion.

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