According to MB Securities Joint Stock Company (MBS), in the first seven months of this year, the banking industry led the way in terms of corporate bonds issued. Accordingly, eight out of 11 businesses lead the amount of corporate bonds issued were banks.
In July, Vietnam Prosperity Joint-Stock Commercial Bank (VPBank) successfully issued $300 million (equivalent to about 7 trillion dong) of international bonds in Singapore, three-year term, fixed interest rate of 6.25 percent per year, interest payment every six months, using US dollar as currency issued and paid.
This successful issuance raised the value of VPBank bonds issued from the beginning of the year to 12.86 trillion dong, topping the market.
Behind VPBank are Asia Commercial Joint Stock BankACB (7.85 trillion dong of corporate bonds), Vietnam International Commercial Joint Stock BankVIB (5 trillion dong), Lien Viet Post Joint Stock Commercial BankLienVietPostBank (4.1 trillion dong), HCM City development Joint Stock Commercial BankHDBank (3.6 trillion dong), Southeast Asia Commercial Joint Stock BankSeABank (3.25 trillion dong), An Binh Commercial Joint Stock BankABBank (2.5 trillion dong) and Bac A Commercial Joint Stock BankBacABank (2.2 trillion dong).
In total, only eight banks issued 41.36 trillion dong of corporate bonds in the first seven months of 2019.
If adding Orient Commercial Joint Stock BankOCB (VND 800 billion of bonds issued in May and June), banks issued a total of 42.16 trillion dong of corporate bonds in the last seven months.
The tenor of these banks was not more than five years, particularly LienVietPostBank had a maximum term of 10 years. Interest rates were not much different, ranging from 6.25 percent per year to 7.5 percent per year.
Also in the first seven months of this year, the market recorded a number of enterprises issuing large amount of corporate bonds, including the typical ones such as REE with 2.32 trillion dong (10-year term, interest rate of 7.3 percent per year), Vinpearl Land with 2 trillion dong (five-year term, interest rate of 10.5 percent per year), Masan Resources with 2 trillion dong (five-year term, interest rate of 10.2 percent per year).
In fact, only VPBank issued a large number of bonds in July. Previously, in June, many businesses in areas such as real estate, construction, infrastructur, etc. also continuously issued bonds.
Some enterprises issued trillions of dongs such as Ngoc Minh Investment and Real Estate Company with 1.3 trillion dong, Hung Thinh Land with 1 trillion dong, Tan Lien Phat Saigon Real Estate Company with 1.561 trillion dong, Tan Lien Phat Logistics and Real Estate Company with 1.979 trillion dong, Helios Investment Company with 1.5 trillion dong, Ba Na Cable Car Service Company with 1.34 trillion dong.
Among the above enterprises, bonds of Ngoc Minh Investment and Real Estate Company had the highest interest rate of 11.8 percent per year.
However, that was not the highest interest rate bond in June. That position belonged to Phat Dat Real Estate Development Company with interest rate up to 14 percent per year.
