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Sunday, July 21, 2024

Corporate bond issues grind to a halt

The Saigon Times

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HCMC – Corporate bond issues have virtually ground to a halt, with a zero-issue streak stretching from October to November 4, the Vietnam Bond Market Association (VBMA) said, citing data from the Hanoi Stock Exchange and the State Securities Commission.

Bonds offered to the public have plunged 56.3% to some VND10.6 trillion since early this year, and bonds issued via private placement have plummeted 52% to nearly VND241 trillion, accounting for 96% of the total value of bonds sold.

On the other hand, the value of bonds falling due in November is estimated to top VND13.5 trillion, with all of them issued through private placement. Of the total, issuers have redeemed bonds early worth over VND149 trillion, skyrocketing 45% over the same period last year, according to the VBMA.

Up to VND130 trillion worth of real estate bonds will fall due in the second and third quarters of next year. Meanwhile, their issuers are struggling with refinancing, RongViet Securities Corporation (VDSC) said.

“It will be tough for realtors to refinance due to Decree 65/2022/ND-CP tightening control over bond sales, credit crunch and eroded trust among bond buyers,” VDSC’s analysts said.

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