There were 27 batches of private placements in November 2023 with a total value of nearly VNĐ27.5 trillion (US$1.13 billion), according to data from the Hà Nội Stock Exchange (HNX) and the State Securities Commission (SSC).

 

The issuances have an average interest rate of 8.6 per cent a year, with an average term of 5.56 years.

 

Last month, banks accounted for the majority of capital mobilised from bonds, while there was only one real estate business, which was Vinhomes, releasing 2-year bonds. The batch was worth VNĐ2 trillion with a rate of 12 per cent per year. 

 

There were two more businesses related to the property industry that successfully issued two batches of bonds in November. Of which, Anh Quân Consulting and Construction Company mobilised nearly VNĐ1.5 trillion from 5-year bonds with a rate of 14 per cent a year, while Saigon Capital JSC issued 5-year bonds at a rate of 12.5 per cent per year, earning VNĐ1 trillion.

 

The report shows that real estate continued to be the industry that mobilised capital from bonds with the highest interest rates in the market.

 

On the contrary, banking is the industry group that issued bonds with the lowest interest rates.

 

For the 11 months of 2023, the total value of corporate bond issuance was recorded at VNĐ247.59 trillion, including 28 public issuances worth VNĐ27 trillion (accounting for 10.9 per cent of the total issuance value) and 210 batches of private placements worth VNĐ220.52 trillion (accounting for 89.1 per cent).

 

Of which, the banking industry accounts for the majority with VND120,058 billion (equivalent to 48.6 per cent of the total). Followed by the real estate group with VND70,497 billion (accounting for 28.5 per cent).

 

A report from the Vietnam Bond Market Association (VBMA) showed that in November, issuers bought back VNĐ8.75 trillion worth of bonds, down 50.4 per cent from the same period of 2022. 

 

In December, it is estimated that about VNĐ30 trillion of bonds matured.

 

For the upcoming issuance plan, the Board of Directors of Vinhomes has approved the plan for a private placement with a maximum value of VNĐ2 trillion. They are non-convertible bonds without warrants and collateral, par value of VNĐ100 million a bond and maximum term of 24 months. The bonds' interest rates will depend on market conditions.

 

Meanwhile, the Board of Directors of Thành Thành Công - Biên Hòa JSC also approved a bond issuance plan with a maximum total value of VNĐ500 and a term of 36 months. These bonds are non-convertible, no warrants and no collateral, with par value of VNĐ100 million a bond.  — VNS