HCMC – Vietnam saw 174 private placements of corporate bond issues totaling VND161.5 trillion in the first seven months of the year, a 2.6-fold increase over the same period last year, showed data from the Ministry of Finance.
Banks were the largest issuers, accounting for 67.5% of the total with over VND109 trillion. Real estate companies followed, with nearly VND38.7 trillion worth of bonds issued, representing 24% of the total, while other sectors made up VND13.8 trillion, or 8.5%.
Secured bonds played a significant role in the market, with VND24 trillion worth of bonds issued, making up 14.9% of the total volume. Of these, 84.4% were issued by real estate firms.
Bond buybacks during the seven-month period amounted to VND88.8 trillion, a 36% drop compared to the same period last year.
In the secondary market, the Hanoi Stock Exchange reported a total transaction value of nearly VND566.86 trillion for the first seven months of this year, with an average daily transaction value of VND4.05 trillion.
VNDirect, a securities brokerage, has forecast bond maturity pressure would ease in the third quarter of this year, with VND38.5 trillion in corporate bonds falling due, down 27.2% against the second quarter. Real estate companies will account for 49% of this total, followed by banks with 26.7%.
The firm also predicted that about VND50 trillion in bank bonds will have their maturity periods shortened to less than a year, likely prompting banks to issue more long-term bonds to replace the maturing ones.
