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Companies collect $1.7 billion via bond issuance in August

Companies collected a total of VNĐ38.4 trillion (US$1.7 billion) via bond issuances in August, according to statistics from the Hà Nội Stock Exchange (HNX).

The average bond maturity was 3.97 years. Three-year bonds accounted for the largest proportion with an issued value of VNĐ22.6 trillion, followed by five-year bonds with VNĐ5.1 trillion and two-year and 10-year bonds with issued values of VNĐ3.2 trillion and VNĐ3.08 trillion, respectively.

Real estate was the largest issuing group with a total issued value of VNĐ11.7 trillion, equivalent to 30 per cent of the total issued value of the market. Credit institutions ranked second with VNĐ10.03 trillion, equivalent to 26 per cent.

Sovico Group JSC and Saigon Glory Co Ltd were the two largest single collectors in August as they both mobilised VNĐ5 trillion.

Masan Group JSC collected nearly VNĐ4.1 trillion, VPBank earned VNĐ2.5 trillion and LienVietPostBank raised the same amount.

Novaland mobilised VNĐ2.2 trillion, FE Credit collected VNĐ1.9 trillion and the Bank for Investment and Development of Việt Nam attained VNĐ1.9 trillion. Phú Long Real Estate JSC earned VNĐ1.8 trillion and Thành Công Trading Services Investment and Construction Company Limited mobilised VNĐ1 trillion.

In the first eight months of this year, VNĐ237.7 trillion was mobilised by enterprises via bonds.

The corporate bond market is expected to flourish in the third quarter a d then step back in the fourth quarter in anticipation of regulatory amendments which will impose restrictions on bond trading from early September.

Since the beginning of this year, the Ministry of Finance has issued warnings about risks which might arise from the abuse of this capital-raising channel, giving out recommendations to investors and market participants.

The ministry has made public a draft decree to amend several points of Decree 163/2018/NĐ-CP about corporate bond issuance for comments, which includes amendments of conditions for corporate bond issuance, rates, issuance in domestic and international markets, information disclosure and reporting mechanisms.

The draft has been submitted to the Government and is expected to take effect in early September.

Under the draft, regulations about bond yields and bond transactions would be tightened. — VNS