Corporate bond issuance value rises by 60 per cent

The corporate bond market continued its robust recovery. — VNA/VNS Photo

The listing scale maintained its upward trend with 466 bond codes listed totalling over VNĐ2.3 trillion, a 13.5 per cent year-on-year increase.

According to MB Securities (MBS), the total value of corporate bonds successfully issued in November was estimated at VNĐ35.8 trillion.

The banking sector dominated with a 71 per cent share. Notable issuances during the month included Techcombank (VNĐ3.7 trillion, 36-month maturity, 5 per cent interest) and ACB (VNĐ2 trillion, 24-month maturity, 5 per cent interest).

November saw Vietcombank issue a green bond worth VNĐ2 trillion at a 4.9 per cent interest rate. This highlights increasing investor interest in supporting sustainable and environmentally friendly projects.

This was Vietcombank's first green bond issuance, marking a significant milestone in its environmental, social and governance (ESG) strategy. The movement reinforces Vietcombank's pioneering role in sustainable finance and its commitment to eco-friendly projects.

In the first 11 months of 2024, the total value of corporate bond issuances exceeded the full-year 2023 figure, reaching nearly VNĐ402.8 trillion, a 60 per cent year-on-year increase.

The weighted average interest rate of corporate bonds over the first 11 months was approximately 7.1 per cent, lower than the 8.3 per cent average in 2023.

The banking sector recorded the highest issuance value, at around VNĐ288.3 trillion, up 130 per cent year-on-year and accounting for 72 per cent of the total. The weighted average interest rate was 5.6 per cent per annum and the average maturity was 5.1 years.

Leading issuers included ACB (VNĐ36.1 trillion), HDBank (VNĐ30.9 trillion) and Techcombank (VNĐ26.9 trillion).

MBS forecasts that banks will continue to ramp up bond issuance to supplement capital for lending. As of December 7, credit growth reached 12.5 per cent, compared to 9 per cent year-on-year.

Credit growth is expected to accelerate in the year’s final months following a strong recovery in manufacturing, exports and services.

The total bond issuance in the real estate sector exceeded over VNĐ60 trillion, down 20 per cent year-on-year. This figure represents 15 per cent of the total.

The weighted average interest rate for real estate bonds stood at 11.6 per cent per annum, with an average maturity of 2.6 years.

Major issuers included Vinhomes Joint Stock Company (VNĐ16.5 trillion), Vingroup Joint Stock Company (VNĐ10 trillion) and Hải Đăng Real Estate Investment and Development Co., Ltd. (VNĐ5.4 trillion).