Companies collect 1.7 billion USD via bond issuance in August hinh anh 1Illustrative image (Photo: VNA)
Hanoi (VNS/VNA) - Companies collected a total of 38.4 trillion VND (1.7 billion USD) via bond issuances in August, according to statistics from the Hanoi Stock Exchange (HNX).

The average bond maturity was 3.97 years. Three-year bonds accounted for the largest proportion with an issued value of 22.6 trillion VND, followed by five-year bonds with 5.1 trillion VND and two-year and 10-year bonds with issued values of 3.2 trillion VND and 3.08 trillion VND, respectively.

Real estate was the largest issuing group with a total issued value of 11.7 trillion VND, equivalent to 30 per cent of the total issued value of the market. Credit institutions ranked second with 10.03 trillion VND, equivalent to 26 percent.

Sovico Group JSC and Saigon Glory Co Ltd were the two largest single collectors in August as they both mobilised 5 trillion VND.

Masan Group JSC collected nearly 4.1 trillion VND, VPBank earned 2.5 trillion VND and LienVietPostBank raised the same amount.

Novaland mobilised 2.2 trillion VND, FE Credit collected 1.9 trillion VND and the Bank for Investment and Development of Vietnam attained 1.9 trillion VND. Phu Long Real Estate JSC earned 1.8 trillion VND and Thanh Cong Trading Services Investment and Construction Company Limited mobilised 1 trillion VND.

In the first eight months of this year, 237.7 trillion VND was mobilised by enterprises via bonds.

The corporate bond market is expected to flourish in the third quarter a d then step back in the fourth quarter in anticipation of regulatory amendments which will impose restrictions on bond trading from early September.

Since the beginning of this year, the Ministry of Finance has issued warnings about risks which might arise from the abuse of this capital-raising channel, giving out recommendations to investors and market participants.

The ministry has made public a draft decree to amend several points of Decree 163/2018/NĐ-CP about corporate bond issuance for comments, which includes amendments of conditions for corporate bond issuance, rates, issuance in domestic and international markets, information disclosure and reporting mechanisms.

The draft has been submitted to the Government and is expected to take effect in early September.

Under the draft, regulations about bond yields and bond transactions would be tightened./.