Latest News about corporate bonds
The volume of corporate bonds without collateral or guaranteed only by shares issued in the first quarter of 2021 accounted for a large proportion, with a large part owned by real estate firms. This poses a significant risk.
Investors have been invited to contribute capital to real estate projects and enjoy a profit of 36 percent per annum, and have also been persuaded to buy corporate bonds at a high interest rate of 18 percent per annum.
Many Vietnamese corporations have rushed to raise capital for plans to expand production and business activities amid the Covid-19 pandemic. The total mobilized capital is up to tens of trillion VND.
Companies are looking to raise debts from bond issuance before the amended Law on Securities takes effect next January.
Akihiko Iwatani, chief representative of Haseko Corporation in Hanoi, believes that Vietnam is the most attractive market in ASEAN for Japanese investors in particular and foreign investors in general.
Real estate enterprises outpaced banks to issue the largest volume of corporate bonds last month, according to a newly released report by SSI Securities Corporation.
Commercial banks remained the biggest bond issuers with VND79.4 trillion worth of bond issuance, accounting for 44.4 per cent of the total figure.
Commercial banks’ purchase of real estate corporate bonds is considered indirect lending to real estate firms, experts say.
Real estate firms are rushing to issue corporate bonds, which analysts say shows their thirst for capital. But there are risks.
Though the corporate bond market really needs to be developed in order to reduce the dependence of the economy on commercial banks, corporate bond issuance must be transparent and secure.