Vietnam corporate bond issuance value plunges 60% in Sept

Corporate bond issuance in September fell about 60% from the previous month to VND24 trillion ($966.18 million), the lowest level since May, according to the Vietnam Bond Market Association (VBMA).

Last month, there were 24 private placement bond issuances valued at VND22.33 trillion and one public offering worth VND1.47 trillion.

From the beginning of the year until September 30, a total of 268 private placement bond issuances worth VND250.4 trillion ($10.08 billion) and 15 public offerings valued at VND27.05 trillion ($1.09 billion) were reported.

Of this, 72% of the issuance value came from commercial banks, while real estate companies accounted for 18.54%.

In September, companies redeemed VND11.75 trillion ($473.03 million) worth of bonds, up 2% year-on-year.

It is estimated that approximately VND79.86 trillion ($3.2 billion) worth of bonds will mature in the remaining months of 2024, with VND35.14 trillion of real estate bonds representing 44%.

There were 26 bond codes with delayed interest payments totaling VND239.4 billion ($9.64 million) and two codes with delayed principal repayments totaling VND550.4 billion ($22.16 million).

In the secondary market, the total value of private placement corporate bond transactions in September reached VND87.77 trillion ($3.53 billion), averaging VND4.62 trillion per session, up 40.2% from August.

Last month, the State Treasury conducted 18 government bond auctions with a total value of VND50.15 trillion ($2.02 billion), achieving a bid-to-cover ratio of 66.5%.

The total value of government bonds issued through auctions in the first nine months of 2024 was VND271.67 trillion ($10.94 billion), equivalent to 67.9% of the annual plan (VND400 trillion).

Of this, the volume of government bonds issued in Q3 was VND115.17 trillion ($4.64 billion), or 76.7% of the quarterly plan (VND150 trillion).

The average maturity of bonds issued in September was 12.09 years, with average winning yield of 2.73% per annum.

In the secondary market, outright trading value was VND147.27 trillion ($5.93 billion), down 1.9% compared to the previous month, while repurchase agreements (Repo) totaled VND110.83 trillion ($4.46 billion), up 19.1%.

The average daily value for outright and Repo transactions was VND7.75 trillion ($312 million) and VND5.83 trillion, up 34.3% and over 250% year-on-year, respectively.

Government bonds with maturity periods of 10 and 15 years continued to dominate trading in the secondary market, accounting for 26.4% and 35.3% of total trading value, respectively.

Foreign investors purchased a net VND492 billion ($19.8 million) in government bonds in September, bringing their net purchase in the first nine months to VND1.1 trillion.

According to VBMA, the yields on Vietnamese government bonds decreased slightly for seven to 20-year bonds and remained relatively stable for other terms.

Yields for 7 to 15-year bonds decreased by 3-6 basis points, while those for 20-year terms fell 11 basis points. Yields for other terms remained stable compared to the end of the previous month.