Corporate bond issuance value rises by 60%

The listing scale maintained its upward trend with 466 bond codes listed totalling over VND2.3 trillion, a 13.5% year-on-year increase.

According to MB Securities (MBS), the total value of corporate bonds successfully issued in November was estimated at VND35.8 trillion.

The banking sector dominated with a 71% share. Notable issuances during the month included Techcombank (VND3.7 trillion, 36-month maturity, 5% interest) and ACB (VND2 trillion, 24-month maturity, 5% interest).

November saw Vietcombank issue a green bond worth VND2 trillion at a 4.9% interest rate. This highlights increasing investor interest in supporting sustainable and environmentally friendly projects.

This was Vietcombank's first green bond issuance, marking a significant milestone in its environmental, social and governance (ESG) strategy. The movement reinforces Vietcombank's pioneering role in sustainable finance and its commitment to eco-friendly projects.

In the first 11 months of 2024, the total value of corporate bond issuances exceeded the full-year 2023 figure, reaching nearly VND402.8 trillion, a 60% year-on-year increase.

The weighted average interest rate of corporate bonds over the first 11 months was approximately 7.1%, lower than the 8.3% average in 2023.

The banking sector recorded the highest issuance value, at around VND288.3 trillion, up 130% year-on-year and accounting for 72% of the total. The weighted average interest rate was 5.6% per annum and the average maturity was 5.1 years.

Leading issuers included ACB (VND36.1 trillion), HDBank (VND30.9 trillion) and Techcombank (VND26.9 trillion).

MBS forecasts that banks will continue to ramp up bond issuance to supplement capital for lending. As of December 7, credit growth reached 12.5%, compared to 9% year-on-year.

Credit growth is expected to accelerate in the year’s final months following a strong recovery in manufacturing, exports and services.

The total bond issuance in the real estate sector exceeded over VND60 trillion, down 20% year-on-year. This figure represents 15% of the total.

The weighted average interest rate for real estate bonds stood at 11.6% per annum, with an average maturity of 2.6 years.

Major issuers included Vinhomes Joint Stock Company (VND16.5 trillion), Vingroup Joint Stock Company (VND10 trillion) and Hai Dang Real Estate Investment and Development Co., Ltd. (VND5.4 trillion).