Corporate bonds still attract investors

Corporate bonds still attract investors

In the first two quarters of 2021, real estate companies are the winners of corporate bond issuance, with an issuance value of up to VND92.3 billion and an average interest rate of 10.36 percent per annum. In the context that interest rates on bank deposits stand at an extremely low level, corporate bonds remain attractive, especially for individual investors. On the other hand, many investors have been circumventing regulations over the past time.
Real estate corporate bond issuance volume declines 55 percent

Real estate corporate bond issuance volume declines 55 percent

The Ministry of Finance, on July 13, informed that after six months of implementing the new legal framework on corporate bonds, the volume of corporate bonds issued through private placement was above VND168.7 trillion, up 3.2 percent over the same period last year. The volume of corporate bonds issued through public offering was more than VND15.37 trillion, equivalent to 50.3 percent of bond issuance volume in 2020, accounting for 8.3 percent of total corporate bond issuance volume.
High-interest rate corporate bonds pose high risks

High-interest rate corporate bonds pose high risks

Recently, the conditions for corporate bond issuance to the public have been tightened by the State. This is a move to reduce risks for investors, especially for individual investors, so the number of issued corporate bonds has also fallen sharply. However, in the context that deposit interest rates remain at a low level, many enterprises have issued corporate bonds with high-interest rates to attract capital.
Corporate bonds cool down

Corporate bonds cool down

According to statistics from securities companies, in the first months of this year, the corporate bond market shows signs of cooling down compared to before because changes in regulations on corporate bond issuance have been tightened.
Illustrative photo

Corporate Bonds issuance still very strong

Private offerings and transaction of corporate bonds in the domestic market, along with offering of corporate bonds to the international market will soon be regulated under Decree 153/2020/ND-CP. This follows a cooling off in the last four months of 2020 due to the impact of tightened issuance conditions under the earlier Decree 81/2020/ND-CP.  
Mizuki Park real estate project in Binh Chanh District, HCMC. (Photo: SGGP)

Money still pours into real estate

Although the capital source for the real estate market has become tighter and tighter, the latest report by the State Bank of Vietnam (SBV) shows that the total credit outstanding balance of the whole economy is VND8.3 quadrillion; of which, credit in the real estate field is about VND1.6 quadrillion, accounting for nearly 20 percent of the total credit outstanding balance of the whole economy.
Corporate bonds draw individual investors because of high interest rates

Corporate bonds draw individual investors because of high interest rates

The Ministry of Finance coordinated with the World Bank (WB) and the Vietnam Bond Market Association to hold a seminar to announce the annual report of the Vietnam bond market in 2019 and dialogue on solutions to develop the corporate bond market on November 9 in Ho Chi Minh City.
An individual investor is opening an account at a securities company. (Photo: SGGP)

Corporate bond market develops rapidly

Amid the context that banks limit medium and long-term loans, many enterprises have shifted to a new capital mobilization channel – corporate bond issuance. Statistics by the Ministry of Finance showed that in the first four months of this year, the corporate bond market developed rapidly, exceeding VND58 trillion.
Real estate companies lured more than 50 percent of the total amount of money mobilized in the bond market. (Photo: SGGP)

Enterprises race to mobilize capital from corporate bonds

While stocks of many enterprises and even banks have dropped to below face values, the bond market has warmed up as enterprises raced to mobilize capital through bond issuance, especially small enterprises.