After a quiet month, corporate bond issuance activity rebounded with a 42% increase. According to VIS Ratings, August marked the third-highest issuance value since the beginning of the year.

Vinhomes led in issuance value with two bond lots raising 15 trillion VND for refinancing at an 11% annual interest rate. This was one of the largest issuances by a real estate company so far this year.

Among banks, HDBank, MB, ACB, and Bac A Bank all conducted issuances exceeding 1 trillion VND. Banks continued to capitalize on low-interest rates to supplement medium- and long-term resources and increase their capital.

According to VnExpress statistics, interest rates for bank issuances ranged from 5.2% to 6.5%, significantly lower than the 8.5% to 11% range for real estate companies.

In the first 8 months of the year, corporate bond issuance reached 373 trillion VND, nearly one and a half times the same period last year. Of this, over 47.8 trillion VND was issued to the public, a 30% increase compared to last year.

The total outstanding bond market debt is currently 1.39 quadrillion VND, a slight increase from the previous month. Of this, about 660 trillion VND is held by banks, while real estate accounts for 391 trillion VND. Several other sectors, such as tourism and resorts, energy, construction, and securities, hold smaller shares.

Along with the positive signal in new issuances, the market also saw improvements in handling delayed principal payments and early repurchases. According to VIS Ratings, in August, a real estate company repaid 4 trillion VND in bond principal.

The Vietnam Bond Market Association (VBMA) estimates that companies repurchased over 27 trillion VND in bonds early last month, a 70% year-on-year increase. The value of bonds maturing in the remaining months of this year is about 69.7 trillion VND, nearly half of which are real estate bonds.

Phuong Dong