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Friday, June 14, 2024

Corporate bond market recovers: MOF

The Saigon Times

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HCMC – The corporate bond market has seen significant improvements since the second quarter, characterized by a notable increase in new issues, according to the Ministry of Finance.

In the year through the end of October, a total of 70 companies issued bonds amounting to VND180.4 trillion. The amount of early bond redemptions during this period reached VND190.7 trillion, up a substantial 30.2% compared to the same period last year.

October alone saw VND41 trillion worth of bonds, a significant uptick of VND17 trillion versus September. In the same month, issuers bought back VND14.2 trillion worth of bonds.

Nguyen Hoang Duong, deputy head of the Banking and Finance Department at the Ministry of Finance, attributed the positive momentum in the corporate bond market to a combination of government policies and dynamics among market participants.

As the market continues to improve, Duong emphasized the importance of allowing only securities professionals to invest in privately-placed corporate bonds. Prospective investors are advised to carefully review legal frameworks, thoroughly scrutinize issuing companies and bond details, conduct in-depth evaluations of the financial standing of issuing companies, and be aware of bond-related risks.

While the Hanoi Stock Exchange’s independent corporate bond trading system is now active, promoting market fluidity and transparency, access to the corporate bond trading platform is currently limited to professional investors.

Duong also said that the Ministry of Finance would instruct the State Securities Commission and associated bodies to conduct thorough inspections of issuing companies and service providers in the near future. This initiative aims to elevate corporate bond issuance standards, enhance service quality in the corporate bond market, and restore investor confidence.

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