Nearly $2.44 bln in corporate bonds to mature in Q4

Bond maturity pressure will increase from the fourth quarter of this year when VND58,840 billion ($2.44 billion) worth of corporate bonds mature, a year-on-year increase of 87.7%.

A bond market report by top broker VNDirect Securities shows that in Q4, the real estate group would see the largest amount of maturing bonds with a total value of over VND20,071 billion ($831 million).

Enterprises with the highest bond maturity value include Novaland Group (VND3,000 billion or $124.2 million) and Bach Hung Vuong JSC (VND2,980 billion).

Finance-banking businesses will have nearly VND19,365 billion ($802 million) in bonds maturing during the next quarter, up 130% over the same period last year.

Those with the largest amount of mature bonds are Techcombank with VND4,500 billion; VIB, VND3,000 billion; and VPBank, VND1,950 billion.

The remaining VND19,404 billion will belong to businesses in other fields like automaker VinFast (VND9,010 billion), Wealth Power JSC (VND2,880 billion) and Sovico Group JSC (VND2,100 billion).

Notably, VNDirect assessed that the recent arrests of some business leaders relating to violations in the issuance of corporate bonds has demonstrated government efforts in cleaning up the capital market.

Besides, the newly-issued Decree 65 supplementing and amending Decree 153 on private corporate bond placements is expected to boost the capital market in the long term.

According to the report, the total value of corporate bonds issued in the third quarter of 2022 reached VND60,635 billion ($2.51 billion), a sharp decrease of 50.5% compared to the previous quarter and 71% over the same period last year.

The finance-banking industry took the lead, accounting for 82.5% of the total value of private corporate bond placements, equivalent to VND48,683 billion; followed by real estate, at 13.7%.

In the first nine months, the total value of corporate bond issuances plunged by 43.5% year-on-year to VND248,603 billion, including VND240,804 billion of private placements, down 42%; and VND7,799 billion of public offerings, down 67%.

The top five bond issuers included BIDV bank, with VND19,872 billion; Vingroup and its subsidiaries, VND16,569 billion; Novaland Group and its subsidiaries, VND15,157 billion; Orient Commercial Joint Stock Bank (OCB), VND12,300 billion); and Asia Commercial Joint Stock Bank (ACB), VND10,450 billion.