VN banks, securities firms step up bond purchases

A recent study by SSI Securities Corporation found that banks and securities companies acquired a large volume of bonds in the January-August period of this year.

VN banks, securities firms step up bond purchases
A bank employee handles banknotes. Local banks and securities firms strongly acquired bonds between January and August this year

During the period, some VND129 trillion worth of corporate bonds was offered, of which bonds worth over VND117 trillion (90.8%) were successfully issued. The local bond market accounted for some 10.2% of the nation’s gross domestic product.

Regarding domestic buyers, securities enterprises were active bond buyers, acquiring some VND29.4 trillion, or 25.4% of the issuance volume. Of the figure, they purchased VND22.9 trillion worth of bonds issued by commercial banks and picked VND3.2 trillion worth of real estate bonds.

According to SSI, the realty bond volume was high compared with the size of the property firms.

In fact, the securities companies had to issue bonds to spur capital. So they might not be the final buyers of realty bonds as they bought the papers on the primary market to resell them on the secondary market.

 

Meanwhile, local banks purchased VND7.4 trillion worth of real estate bonds and over VND3.7 trillion worth of bonds in other sectors. According to the account balances of 18 listed banks, they held nearly VND230.5 trillion worth of bonds at the end of the second quarter of this year, up by VND65 trillion versus the end of 2018. Techcombank remained the largest bondholder, with bonds worth VND60.6 trillion.

As securities enterprises are key buyers, banks likely cross-owned their bonds, aiming to improve mobilization and the ratios of medium- and long-term capital to meet the requirements of the State Bank of Vietnam.

Foreigners were active on the bond market, net buying over VND13 trillion worth of government bonds. They also purchased over VND10.2 trillion worth of corporate bonds on the primary market, making up 8.8% of the issuance volume.

According to the report, commercial banks remained the key issuers, offering some VND56 trillion worth of bonds, or 47.9% of the issuance volume, followed by real estate firms with VND36.9 trillion (31.5%), infrastructure developers with VND9.2 trillion (7.9%) and non-bank institutions with VND4.4 trillion (3.8%). Among real estate firms, up to 44 companies offered VND47.8 trillion worth of bonds, but investors purchased only VND36.1 trillion worth of bonds.

Most banks provided fixed annual yields, staying at some 6.75% per year over 3.3 years. Meanwhile, real estate firms applied an average rate of 10.01% per year. SGT

 
 

Other News

.
Banks push bancassurance amid low credit growth
Banks push bancassurance amid low credit growth
BUSINESSicon  09/10/2020 

Banks are pushing the sale of life insurance products (bancassurance) in the context of low credit growth since the beginning of this year due to the impacts of the COVID-19 pandemic.

Sound direction for Vietnam’s chances of economic revival
Sound direction for Vietnam’s chances of economic revival
BUSINESSicon  09/10/2020 

Despite heavy aftermaths caused by the global health crisis, the Vietnamese economy remains in positive growth in the first nine months of the year on the back of the government’s sound responses to curb the pandemic return.

Mystery businessmen pours VND150 billion into ITA, Dang Thi Hoang Yen makes surprise move
Mystery businessmen pours VND150 billion into ITA, Dang Thi Hoang Yen makes surprise move
BUSINESSicon  09/10/2020 

The ITA shares of the Tan Tao Group unexpectedly witnessed an impressive trading session with a record high trading volume.

VN rice exporters gear up to penetrate EU arena
VN rice exporters gear up to penetrate EU arena
BUSINESSicon  08/10/2020 

Vietnamese companies have been stepping up investment to boost rice exports to Europe – however, it remains a challenging task penetrate the market efficiently.

VRDF highlights advantages of value chain development
VRDF highlights advantages of value chain development
BUSINESSicon  08/10/2020 

Amid the heavy impact the pandemic has had so far on Vietnam’s economy, possible solutions to overcome the crisis and come out even stronger have been under discussion at this year’s Vietnam Reform and Development Forum.

Plastic stocks surge in two months, boosted by low production cost
Plastic stocks surge in two months, boosted by low production cost
BUSINESSicon  08/10/2020 

Listed plastic companies have seen their market values expand 15-50 percent in the last two months on low oil prices and increased consumption.

Husbandry to undergo modernisation
Husbandry to undergo modernisation
BUSINESSicon  08/10/2020 

New technologies from the fourth Industrial Revolution will be applied in livestock breeding in order to produce safe and high-quality output while improving the husbandry sector’s competitive edge,

Businessman leaves after 16 years of building fortune
Businessman leaves after 16 years of building fortune
BUSINESSicon  08/10/2020 

The long battle inside the biggest construction company in Vietnam has come to an end with the departure of a successful businessman.

VN issues action plan to implement National Energy Development Strategy
VN issues action plan to implement National Energy Development Strategy
BUSINESSicon  08/10/2020 

Vietnam aims to raise its renewable energy sources to 15-20 per cent of the total energy supply by 2030 and 25-30 cent by 2045.

Trade surplus reaches $7.2 billion
Trade surplus reaches $7.2 billion
BUSINESSicon  07/10/2020 

Vietnam’s total import-export turnover for agricultural, forestry and fishery products in January-September was estimated at nearly US$52.8 billion, making for a trade surplus of $7.2 billion,

Additional economic relief packages in the pipeline
Additional economic relief packages in the pipeline
FEATUREicon  07/10/2020 

The Government is drafting second economic relief packages aimed at assisting the national economy, especially businesses, in the face of the ongoing COVID-19 crisis.

Local manufacturing industry enjoys solid growth in September
Local manufacturing industry enjoys solid growth in September
BUSINESSicon  07/10/2020 

Manufacturing sector returned to growth in September as concerns around the outbreak of the COVID-19 pandemic in the country eased. Both output and new orders increased, while business confidence strengthened, and the rate of job cuts softened.

Agriculture: Backbone of Vietnam’s economy
Agriculture: Backbone of Vietnam’s economy
BUSINESSicon  07/10/2020 

Agriculture has long been the backbone of Vietnam’s economy and has posted a range of achievements in the 30 years since the country’s economic reform (Doi Moi) process got underway.

Negotiations on Vietnam-UK FTA expected to be completed late this year
Negotiations on Vietnam-UK FTA expected to be completed late this year
BUSINESSicon  07/10/2020 

Vietnam and the United Kingdom are speeding up negotiations on a new-generation free trade agreement between the two sides, which is expected to be completed at the end of this year.

Billions of dollars worth of shares expected to enter bourse
Billions of dollars worth of shares expected to enter bourse
BUSINESSicon  07/10/2020 

A number of commercial banks are going to list their shares at the HCM City Stock Exchange (HOSE), and are expected to bring a breath of fresh air to the market, which has been stagnant because of the pandemic.

Dirt-cheap so-called ‘branded’ cosmetics fooling people on Facebook
Dirt-cheap so-called ‘branded’ cosmetics fooling people on Facebook
BUSINESSicon  07/10/2020 

Skincare and make-up products, introduced on livestreams as branded goods, priced at just several thousand or tens of thousand dong, have trapped many people.

‘Branded goods King’ sells pho, earns VND1 billion a day
‘Branded goods King’ sells pho, earns VND1 billion a day
BUSINESSicon  08/10/2020 

Billionaire Johnathan Hanh Nguyen, Duc Long Gia Lai and Diem Thong Nhat were top names in the news last week.

After peaking in 2019, startup investment slows down in first half of 2020
After peaking in 2019, startup investment slows down in first half of 2020
BUSINESSicon  06/10/2020 

Investment in Vietnamese startups reached a record high in 2019 but dropped 22 per cent in the first half of 2020 due to COVID-19, according to the Vietnam Tech Investment Report 2019 for the first half of 2020 by Do Ventures.

VIETNAM'S BUSINESS NEWS HEADLINES OCTOBER 8
VIETNAM'S BUSINESS NEWS HEADLINES OCTOBER 8
BUSINESSicon  08/10/2020 

HCM City businesses resume operation as pandemic eases: city official

VIETNAM'S BUSINESS NEWS HEADLINES OCTOBER 7
VIETNAM'S BUSINESS NEWS HEADLINES OCTOBER 7
BUSINESSicon  07/10/2020 

Processing-manufacturing companies optimistic about Q4 business outlook

 
 
 
Leave your comment on an article

OR QUICK LOGIN