Update news corporate bond markets
A number of businesses have reported losses or profit decreases of up to trillions of dong after biannual reviews, though they had reported large profits before. But this was not a surprise, especially for real estate firms.
Vietnamese enterprises are issuing corporate bonds in the international market as they have found it difficult to mobilize capital domestically after a number of scandals. However, this has been the choice of only some large enterprises.
The value of corporate bonds issued in the first seven months of 2023 was much lower than in the same period last year. Many enterprises bought back bonds in large quantities before they became due.
According to the Finance Ministry, the corporate bond market of Vietnam remains relatively modest compared to others in the region.
The corporate bond market will continue to face headwinds in the second half of the year, experts said.
A staggering VND147.3 trillion worth of corporate bonds will fall due in the second half of the year, with nearly half (over VND72 trillion) owed by real estate firms.
The operation of a separate corporate bond trading system is necessary to develop a transparent secondary market and increase liquidity for corporate bonds.
More than VND42 trillion ($1.77 billion) worth of corporate bonds were rolled over in the second quarter, providing issuers, mostly property...
Real estate firms and leading enterprises issued nearly one billion USD worth of corporate bonds within two weeks after the government released a decree, removing obstacles for enterprises.
A real estate firm has successfully raised funds by issuing VND4.7 trillion worth of corporate bonds. Just days before, another real estate firm also successfully issued VND2.3 trillion worth of bonds.
The State Bank of Vietnam (SBV), the nation’s central bank, is taking steps to tighten control on commercial banks’ acquisitions of corporate bonds.