The bonds have an average interest rate of 5.4% and a maturity of four years.
Leading issuers include Techcombank (17 trillion VND), ACB (12 trillion VND), and MB (8.9 trillion VND).
The hike in bond issuance is expected to enhance the banks’ capacity for medium- and long-term capital, supporting credit in the second half of the year.
The real estate sector followed with 32.6 trillion VND in bond issuance at an average rate of 12%, double the current savings rates.
Major players include Vinhomes (12.5 trillion VND), Vingroup (10 trillion VND), and Hai Dang Real Estate (2.5 trillion VND).
Total corporate bond issuance in Vietnam has surpassed 160 trillion VND this year, with nearly 11.8 trillion VND issued publicly and 148.9 trillion VND privately, data from the Vietnam Bond Market Association (VBMA) showed.
The number of corporate bond issuers, mainly real estate developers, struggling to meet repayment obligations is rising due to a sluggish market.
By the end of July, 116 companies had reported payment delays.
Novaland Group recently secured bondholder approval to restructure a 300 million USD convertible bond package due in 2026, which has a 5.25% interest rate.
The company also extended the maturity of eight out of 17 NVL2020 bond batches, totaling nearly 3.11 trillion VND.
Late repayment has been a persistent issue, worsened by arrests of leaders at major developers such as Tan Hoang Minh Group and FLC Group, which have shaken market confidence.
The arrest of Truong My Lan, 68, chairwoman of Van Thinh Phat Group, in October 2022, marked a significant downturn for the financial market.
Analysts have warned the corporate bond market faces unprecedented challenges due to insufficient oversight from state agencies.
The total value of defaulted bonds is around 209.8 trillion VND, with the real estate sector accounting for nearly 70%.
More than 95.3 trillion VND in bonds will mature in the second half of the year, with real estate accounting for 65% of this amount./. VNA
- © Copyright of Vietnamnet Global.
- Tel: 024 3772 7988 Fax: (024) 37722734
- Email: [email protected]