Firms issue 7.71 billion USD worth of bonds in 10 months

11:07 | 15/11/2019
The total value of corporate bonds was 178.7 trillion VND (7.71 billion USD) in January-October this year, according to SSI Retail Research.
firms issue 771 billion usd worth of bonds in 10 months
Illustrative image (Photo: VNA)

Commercial banks remained the biggest bond issuers with 79.4 trillion VND worth of bond issuance, accounting for 44.4 percent of the total figure.

Real estate companies issued 61.27 trillion VND worth of corporate bonds, accounting for 34.3 percent of the total.

The remainders were infrastructure developers, securities firms and other types of business.

In 2010, more than 17 trillion VND worth of corporate bond notes was issued with about 55 percent of the total belonging to real estate firms.

The biggest issuers included Vinametric Co Ltd, the owner of Saigon Prince Hotel in Ho Chi Minh City.

The company issued 3.7 trillion VND worth of two-year bonds with yield rate set at 10.5 percent per annum for the first year.

In the second year, the yield rate would be the central bank’s reference rate plus 3.65 percent per year. Interest is paid every six months.

Following the hotel operator was Sai Gon Vina Real Estate JSC (Land Saigon) that issued 1.85 trillion VND worth of three-year bonds with a fixed yield rate of 11 percent per annum.

Average bond yield rate in October was 10.5 percent per annum, which was up 2.7 percent from September.

Banks had the lowest bond yield rates and also lowered their issuance last month. Meanwhile, data showed property firms’ average bond yield rate rose from 9.6 percent in September to 10.5 percent in October.

Foreign investors purchased 7.6 percent of the total bond issuance and the rest was sold to domestic investors.

A large number of bond issuance was confidential. For public deals, securities firms were the biggest buyers as they bought 31.4 trillion VND worth of bonds in 10 months, accounting for 18 percent of the total.

Brokerage firms targeted bank bonds as 80 percent of their purchases were issued by local banks. Meanwhile, commercial banks invested 12 trillion VND into bonds of property and infrastructure developers.

Techcombank Securities Co (TCBS), VNDirect Securities Corp (VNDS) and MB Securities Co (MBS) were the top three underwriters in the 10-month period, focusing on real estate and bank bonds.

VNA

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