There were 24 private placements of corporate bonds totalling over VND 22.3 trillion (US$898.6 million) and one public issuance amounting to nearly VND1.5 trillion in September, according to data compiled by the Vietnam Bond Market Association (VBMA) from the Hanoi Stock Exchange (HNX) and the Securities Commission of Vietnam (SSC).
Consequently, the total value of corporate bond issuances in September was only 40 percent of the previous month (August saw issuances surpassing VND60 trillion), marking a five-month low.
For the first nine months of the year, there were 268 private placements totalling VND250.4 trillion and 15 public bond issuances amounting to more than VND27 trillion.
Notably, commercial banks represented 72 percent of the total bond issuance value, while real estate enterprises accounted for 18.54 percent.
In September, businesses repurchased nearly VND11.75 trillion in maturing bonds, up 2 percent from 2023.
For the rest of 2024, an estimated VND79.86 trillion worth of bonds are expected to mature, with real estate bonds accounting for VND35.13 trillion (44 percent). Additionally, 26 new instances of defaulted interest bonds worth VND239.4 billion and two defaulted principal bonds worth VND550.4 billion were reported.
On the secondary market, corporate bond transactions totalled nearly VND87.8 trillion in September, with an average of over VND4.6 trillion per session, a 40.2 percent increase from August.
Last month, the State Treasury held 18 government bond auctions totalling VND50.15 trillion with a 66.5 percent bidding success rate.
The Treasury auctioned bonds with maturities ranging from 5 to 30 years. Notably, 10-year and 15-year terms received the majority of bids, totaling VND22.15 trillion (66 percent) and VND8.55 trillion (26 percent), respectively.
Government bond issuances through auctions in the first nine months reached VND271.6 trillion, 67.9 percent of the annual plan. The average term issued in September was 12.09 years, with an average winning bid interest rate of 2.73 percent per annum.
The Ministry of Finance will not provide guarantees for bonds issued by the Vietnam Social Policy Bank and Vietnam Development Bank in 2024, as per documents 6139/BTC-QLN and 6140/BTC-QLN.
