HSBC is first foreign bank to issue bonds in Vietnam
| |
The logo of HSBC is seen on an office in Hoan Kiem District, Hanoi. Photo by Shutterstock/Asia Images. |
"We plan to be a regular issuer as we look to position our franchise to continue to be the leading foreign bank in the market," Tim Evans, CEO of HSBC Vietnam, said in a statement.
The bank will use the proceeds to increase operating capital and persify local currency funding sources.
Ngo Dang Khoa, its country head of global markets, said Vietnam is among the fastest-growing bond markets in Southeast Asia with issuances accounting for 9.01% of GDP in 2018 and 11.3% last year.
But it is still small compared to 20%-50% in other Asian countries like South Korea and Singapore, he said.
So the country needs to do more to encourage investors to buy bonds, and make its legal framework more comprehensive, he said.
Corporate bond issuances rose by 50% year-on-year in the first six months of the year to VND159 trillion (US$6.8 billion), according to the Hanoi Stock Exchange. Over 59% of it was by banks and property developers.
The government recently made moves to tighten bond issuances amid concerns that companies will not be able to repay their debts.
It issued a new decree limiting companies to two issuances a year and to a total value of five times their equity.
Related News
Bright spots at the beginning of the year
10:51 | 23/03/2024 Headlines
Vietnam experiences a trade surplus of over US$11 billion in two months
13:47 | 15/03/2024 Import-Export
Good management of public debt creates room to implement expansionary fiscal policy
10:06 | 19/03/2024 Finance
The Minister of Finance chaired the Vietnam - Korea Financial Investment Promotion Conference
09:50 | 11/03/2024 Finance
Latest News
Central bank urges card issuers to review procedures
14:40 | 27/03/2024 Finance
Warning about impersonating tax authorities to commit fraud during tax finalization month
10:22 | 27/03/2024 Finance
“3 priorities, 3 breakthroughs” in task deployment of State Treasury
10:19 | 27/03/2024 Finance
Effectively apply M&A to go long distance
09:51 | 26/03/2024 Finance
More News
Hanoi State Treasury proactively digitizes and transforms operating methods
10:15 | 25/03/2024 Finance
The Ministry of Finance continues to strongly improve the business environment, reducing the rate of businesses temporarily suspending operations
19:40 | 24/03/2024 Finance
Vietnam tackles obstacles to stock market upgrade
19:28 | 24/03/2024 Finance
Looking forward clear instructions in tax finalization in 2023
15:40 | 24/03/2024 Finance
Proactive in dealing with exchange rate pressure
10:49 | 23/03/2024 Finance
Tax sector accompanies and supports tax finalization
09:34 | 21/03/2024 Finance
Minister of Finance: Fairness and transparency for the insurance market
14:37 | 20/03/2024 Finance
Vietnamese securities companies race to boost capital amid high market demand
14:36 | 20/03/2024 Finance
Central bank required to take urgent measures to stabilise gold market
14:33 | 20/03/2024 Finance
Your care
Central bank urges card issuers to review procedures
14:40 | 27/03/2024 Finance
Warning about impersonating tax authorities to commit fraud during tax finalization month
10:22 | 27/03/2024 Finance
“3 priorities, 3 breakthroughs” in task deployment of State Treasury
10:19 | 27/03/2024 Finance
Effectively apply M&A to go long distance
09:51 | 26/03/2024 Finance
Hanoi State Treasury proactively digitizes and transforms operating methods
10:15 | 25/03/2024 Finance