Illustrative image (Source: VNA) Hanoi (VNS/VNA) - Realestate firms were the major corporate bond issuers in the market in January,according to updates from SSI Securities Corporation.
SSI’s statistics showed that real estatefirms issued bonds worth 7.36 trillion VND (317.2 million USD) in January,accounting for 55 percent of the total value of corporate bonds issued in themarket.
In comparison, the value of corporate bondsissued by banks in January accounted for just 2.1 percent of the total issuancevalue, while energy and mining firms 2.7 percent and infrastructuredevelopment firms 1.9 percent
Corporate bonds of real estate firms hadaverage yields of 11.78 percent per year and average term of 4.98 years.
More than 7.36 trillion VND worth ofcorporate bonds issued in January came from only seven real estate companies.
Notably, Paradise Golf Development JointStock Company had the highest bond value issued in January, worth 2.68 trillionVND, with 10-year terms and average yield of 11.5 percent.
Among the seven real estate firms, CityGarden Joint Stock Company issued bonds at the highest yield of 13.3 percentper year.
Other issuers were APEC Land Hue, Cu Lao ChamTrading-Tourism and Investment Joint Stock Company, Phu Thuong Construction andInvestment Joint Stock Company, Phu Hung Real Estate Investment Company and TNRHoldings.
Real estate firms tended to issue bonds as achannel to raise capital as credit in the property sector was being tightened.
As the corporate bond market was overheatingin recent years, the Ministry of Finance was planning to make regulations oncorporate bond issuance more stringent, including regulations related toconditions for corporate bond issuance, rates, issuance approach in domesticand international markets, information disclosure and reporting mechanism.
Statistics from the Hanoi Stock Exchangeshowed that 211 firms issued bonds worth a total of 280 trillion VND in 2019,up by 25 percent compared to 2018.
The scale of Vietnam’s corporate bond marketexpanded from 9.01 percent of the country’s gross domestic product (GDP) in2018 to 11.3 percent GDP in 2019 with a total of nearly 670 trillion VND worthof corporate bonds in circulation.
SSI’s statistics showed that the totalcorporate bond value issued by real estate firms in 2019 reached 106.5 trillionVND, or 38 percent of the total issuance value, only after banks./.
VNA
