Banking sector leads corporate bond issuance

The banking sector has maintained its lead in corporate bond issuance, totaling VND15,790 billion ($677.7 million) in June, according to the Vietnam Bond Market Association.

Techcombank led the pack with VND4,500 billion ($193.1 million), followed by BIDV and MBBank with $191.4 million and $117.2 million respectively, the association noted in a report with data updated until June 24.

Financial institutions issued $47.2 million of bonds through private placement. VPBank SMBC Finance (SMBC) held the lion's share with $42.9 million worth of 2-year bonds after three issuances.

The report also mentioned the real estate sector's return to the corporate bond market following a brief period of inactivity after the stock market watchdog in April cancelled nine bond issuances by Tan Hoang Minh Group due to its provision of “untrue information”.

Novaland led the real estate sector with an issued value of VND2,300 billion ($98.7 million), followed by Nam Long Group with $21.4 million.

Other real estate developers had returned to the market in May, including Vingroup’s $525 million worth of international bonds; My Phu Real Estate Trading Investment, VND700 billion ($30 million) in domestic bonds; Hoi An Invest, VND300 billion ($12.9 million); An Gia Investment, also $12.9 million; and Long Thanh Riverside, $4.5 million.

In June, the market recorded a $100 million international bond issuance by Vingroup, and 26 domestic corporate bond issuances through private placement, totaling VND18,210 billion ($781.5 million).

In the year to June 24, total amount of bonds issued in public offerings and private placements were VND8,996 billion ($386 million) and VND143,389 billion ($6.15 billion), down 6.14% and 30% respectively, with the latter accounting for 94% of the total value.