Real estate bonds account for more than half in bond market

In January alone, the total corporate bond issuance exceeded VND13.37 trillion, of which real estate enterprises issued more than VND7.36 trillion, accounting for 55 percent of the total issuance in the market.
The interest rates of corporate bonds were extremely high, with an average interest rate of above 10 percent per annum for an average term of five years. Of which, many real estate enterprises offered interest rates of up to 14 percent per annum, doubling interest rates of banks.

Although bonds are considered to have high interest rates and high risks, individual investors have bought more than VND2.35 trillion. Of which, banking bonds were worth around VND500 billion, and the rest was real estate bonds. Most of the trading activities in the bond market were transactions between enterprises that relate to each other. For instance, VPBank bought nearly VND1.6 trillion worth of bonds of City Garden Company, or Techcombank and Techcombank Securities Company bought VND950 billion worth of bonds of Vinfast. Foreign institutions merely participated in the bond market with VND98 billion.

By Han Ni – Translated by Gia Bao

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