Corporate bond issuance value up 60%
The corporate bond market continued its robust recovery with an average transaction value of 11.54 trillion VND (453.5 million USD) per session, up 77% compared to the previous year.
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| Corporate bond issuance value rises by 60%. (Illustrative image. Source: VNA) |
The listing scale maintained its upward trend with 466 bond codes listed totalling over 2.3 trillion VND, a 13.5% year-on-year increase.
According to MB Securities (MBS), the total value of corporate bonds successfully issued in November was estimated at 35.8 trillion VND.
The banking sector dominated with a 71% share. Notable issuances during the month included Techcombank (3.7 trillion VND, 36-month maturity, 5% interest) and ACB (2 trillion VND, 24-month maturity, 5% interest).
November saw Vietcombank issue a green bond worth 2 trillion VND at a 4.9% interest rate. This highlights increasing investor interest in supporting sustainable and environmentally friendly projects.
This was Vietcombank's first green bond issuance, marking a significant milestone in its environmental, social and governance (ESG) strategy. The movement reinforces Vietcombank's pioneering role in sustainable finance and its commitment to eco-friendly projects.
In the first 11 months of 2024, the total value of corporate bond issuances exceeded the full-year 2023 figure, reaching nearly 402.8 trillion VND, a 60% year-on-year increase.
The weighted average interest rate of corporate bonds over the first 11 months was approximately 7.1%, lower than the 8.3% average in 2023.
The banking sector recorded the highest issuance value, at around 288.3 trillion VND, up 130% year-on-year and accounting for 72% of the total. The weighted average interest rate was 5.6% per annum and the average maturity was 5.1 years.
Leading issuers included ACB (36.1 trillion VND), HDBank (30.9 trillion VND) and Techcombank (26.9 trillion VND).
MBS forecasts that banks will continue to ramp up bond issuance to supplement capital for lending. As of December 7, credit growth reached 12.5%, compared to 9% year-on-year.
Credit growth is expected to accelerate in the year’s final months following a strong recovery in manufacturing, exports and services.
The total bond issuance in the real estate sector exceeded over 60 trillion VND, down 20% year-on-year. This figure represents 15% of the total.
The weighted average interest rate for real estate bonds stood at 11.6% per annum, with an average maturity of 2.6 years.
Major issuers included Vinhomes Joint Stock Company (16.5 trillion VND), Vingroup Joint Stock Company (10 trillion VND) and Hai Dang Real Estate Investment and Development Co., Ltd. (5.4 trillion VND).
(Source: VNA)
