Over 10.8bln USD in corporate bonds issued in 2022

Banking sector led in issuing bonds of over VND136.7 trillion (5.74 billion USD) last year, according to the Vietnam Bond Market Association (VBMA).

More than VND258.5 trillion (10.8 billion USD) worth of corporate bonds were issued in 2022, according to the Vietnam Bond Market Association (VBMA).

The banking sector led the market by issuing bonds with a total value of more than VND136.7 trillion (5.74 billion USD).

It was followed by real estate with nearly VND52 trillion (2.18 billion USD) issued by property companies.

More than VND289.8 trillion (12.17 billion USD) worth of bonds will mature this year, including over VND119 trillion (5 billion USD) worth of real estate corporate bonds, according to the VBMA.

The Prime Minister recently issued a Resolution on the socio-economic development plan, in which one of priorities is to promote restructuring to improve the operational efficiency of monetary, securities, corporate bond, and real estate markets this year.

Over $10.8bln in corporate bonds issued in 2022
Over $10.8bln in corporate bonds issued in 2022.

A total of 420 private placements of corporate bonds worth approximately 244.6 trillion VND (10.43 billion USD) were made in 2022, accounting for 96% of the total issuance value and marking a year-on-year decrease of 66%, according to the VBMA.

In 2022, the banking group was the largest issuer of private corporate bonds with a value of VND 136.77 trillion VND, accounting for 53.6% of the total issuance value.

The average issuance term of this group is 5.47 years, and the average annual interest rate 5.48%.

The real estate group was the runner-up with an issuance value of nearly 52 trillion VND, accounting for 20.4% of the total issuance value. Compared to 2021, the value of bonds issued by real estate businesses decreased by nearly 76%.

In 2022, businesses bought back 210.83 trillion VND, an increase of 46% compared to 2021.

In 2023, about 290 trillion VND of bonds will reach maturity. Particularly, in the first month of the year, about VND 17.5 trillion VND of bonds get matured including 10.5 trillion VND of real estate bonds, accounting for 60% of corporate bonds’ value and 5.9 trillion VND of construction bonds, accounting for 34%.

According to VBMA, in the first week of 2023, no corporate bond placements were recorded. The total value of bonds bought back by bond issuers before maturity was 310 billion VND, down 17% compared to the same period last year.

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(Source: en.vneconomy.vn)