The corporate bond market is making a comeback with large-scale issuances from a wide range of players – not just banks, but also finance companies and real estate firms.

 

According to a report by MBS Securities on the first half of 2025, June alone saw an eye-popping 106 new bond issuances from enterprises, with a total estimated value of VNĐ123.7 trillion (US$4.86 billion) – up 87 per cent year-on-year and the highest monthly figure on record.

 

Cumulatively, corporate bond issuance in the first six months reached over VNĐ265.8 trillion, marking a 91.3 per cent increase compared to the same period last year. The average weighted interest rate was around 6.8 per cent, down from 7.2 per cent in 2024.

 

Banks remained the dominant issuers, with nearly VNĐ198.5 trillion raised - a surge of 131 per cent year-on-year. Leading issuers included HDBank, BacABank, Techcombank, ACB, and BIDV. The average bond yield for banks was 5.6 per cent per annum, with an average maturity of 4.4 years.

 

Among non-bank financial institutions, Home Credit Vietnam stood out in June with six bond issuances, raising a total of VNĐ2.85 trillion. Consumer finance firms MB Shinsei (Mcredit) and F88 also returned to the bond market.

 

On June 26,  2025, Mcredit issued VNĐ1 trillion worth of bonds (code MSF12501) with a six-year term, its first issuance of the year. Earlier, on 12 June, F88 issued VNĐ50 billion in 18-month bonds (code F8812503).

 

According to MBS, this uptick in bond issuance by credit institutions reflects rising demand for medium- and long-term capital. The trend is particularly notable given that credit growth surged to 9.9 per cent in the final month of Q2, while deposit interest rates remained low. Credit growth is estimated to be 1.3 to 1.5 times faster than capital mobilisation.

 

Real estate ranked second in bond fundraising, with a total issuance of VNĐ40.2 trillion, up 24 per cent year-on-year. The average yield stood at 10.5 per cent per annum, much higher than the banking sector, with an average term of 2.5 years. Notable issuers included Vingroup, TCO Real Estate, and An Thịnh General Trading and Services.

 

A separate report by SSI Securities (S&I Ratings) showed the corporate bond market recorded VNĐ258 trillion in issuances during the first half of 2025 - up 67 per cent compared to the same period in 2024. Q2 alone contributed more than VNĐ233 trillion through 188 issuances, 98 per cent of which were private placements.

 

Banks accounted for a staggering 75 per cent of total bond volume (nearly VNĐ193 trillion), solidifying their leading role. In contrast, the real estate sector, which once made up nearly 50 per cent of the market during the 2021 peak, now only accounts for 17 per cent (about VNĐ43 trillion). — VNS