Hanoi (VNS/VNA) - The total value of corporate bond issuances in September dropped significantly, by 60% from August, to the lowest figure recorded since May, a recent report showed.
There were 24 private placements of corporate bonds totalling over 22.3 trillion VND (898.6 million USD) and one public issuance amounting to nearly 1.5 trillion VND 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% of the previous month (August saw issuances surpassing 60 trillion VND), marking a five-month low.
For the first nine months of the year, there were 268 private placements totalling 250.4 trillion VND and 15 public bond issuances amounting to more than 27 trillion VND.
Notably, commercial banks represented 72% of the total bond issuance value, while real estate enterprises accounted for 18.54%.
In September, businesses repurchased nearly 11.75 trillion VND in maturing bonds, up 2% from 2023.
For the rest of 2024, an estimated 79.86 trillion VND worth of bonds are expected to mature, with real estate bonds accounting for 35.13 trillion VND (44 %). Additionally, 26 new instances of defaulted interest bonds worth 239.4 billion VND and two defaulted principal bonds worth 550.4 billion VND were reported.
On the secondary market, corporate bond transactions totalled nearly 87.8 trillion VND in September, with an average of over 4.6 trillion VND per session, a 40.2% increase from August.
Last month, the State Treasury held 18 government bond auctions totalling 50.15 trillion VND, with a 66.5% 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, totalling 22.15 trillion VND (66%) and 8.55 trillion VND (26%), respectively.
Government bond issuances through auctions in the first nine months reached 271.6 trillion VND, 67.9% of the annual plan. The average term issued in September was 12.09 years, with an average winning bid interest rate of 2.73% 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./.
