Vietnamplus

Companies are looking to raise debts from bond issuance before the amended Law on Securities takes effect next January.

The issuance of corporate bonds in Indonesia will likely decline this year as many companies shelve plans to seek funding because of unfavorable global economic conditions, analysts have said.

The corporate bond market had seen exponential growth in recent years as banking credit for several sectors was narrowed, forcing firms to shift to bond issuance to raise capital, Nguyen Khac Quoc Bao, head of the Financial and Bank Department at the HCM City Economics University, told Thoi bao Kinh doanh (Business Times).

Masan Group, a private conglomerate in Vietnam, has successfully issued 30 million bonds, named BondMSN012023, worth 3 trillion VND (128.8 million USD).

Real estate firms were the major corporate bond issuers in the market in January, according to updates from SSI Securities Corporation.

The Ministry of Finance will tighten regulations over corporate bond issuance because of an overheating market to protect investors and prevent risks which might arise from the abuse of this capital raising channel.

Rising medium- and long-term capital demands to meet stricter regulations on credit safety limits and capital adequacy early next year were putting pressure on commercial banks to issue bonds in the final months of the year, experts said.

Vietnamese securities companies are looking to raise capital to supplement business activities and enhance operational efficiency.

Investors should make careful decisions when purchasing corporate bonds, especially coming with high yield rates, to avoid risks, the Ministry of Finance (MoF) has said.

The State Treasury has mobilised more than 182.4 trillion VND (7.88 billion USD) through Government bond auctions on the Hanoi Stock Exchange (HNX) so far this year, fulfilling 73 percent of the yearly plan.

The total value of corporate bonds was 7.7 billion USD in January-October this year, according to SSI Retail Research.

The total value of corporate bonds was 178.7 trillion VND (7.71 billion USD) in January-October this year, according to SSI Retail Research.

The State Treasury has mobilised nearly 174.2 trillion VND (around 7.5 billion USD at current exchange rate) through Government bond auctions on the Hanoi Stock Exchange (HNX), fulfilling 70 percent of the yearly plan.

A total of 117 trillion VND (5.03 billion USD) worth of corporate bond notes were raised in the first eight months of 2019, according to SSI Securities Corporation’s research unit.

Banks have been the main player in the corporate bond market so far this year, with eight of the top 10 biggest issuers being financial institutions.

The Government’s foreign debts have been declining sharply and under the Government’s control, Deputy Prime Minister Vuong Dinh Hue said while chairing a meeting with leaders of some ministries, sectors and the National Financial Supervisory Commission in Hanoi on August 9.

Viet Capital Securities Joint Stock Company (VCSC) has announced the results of its bond issuance.

More than 9.1 trillion VND (391 million USD) worth of corporate bonds were issued in the first quarter of 2019, up 222 percent year on year.

Standard Chartered Bank Vietnam on January 29 announced its arrangement for the Refrigeration Electrical Engineering Corporation (REE) to issue 2.31 trillion VND (100 million USD) in fixed rate bonds.

The Philippines has raised 1.5 billion USD from the sale of 10-year bonds in recent days to help fund its 2019 spending plan.