Banks have been the main player in the corporate bond market so far this year, with eight of the top 10 biggest issuers being financial institutions.
Vietnam Prosperity Bank (VPBank) topped the list with bond issuance reaching VND12.86 trillion (US$552 million) in value in the first seven months of the year, the latest debt market report from MB Securities Joint Stock Company showed.
In July alone, VPBank successfully issued $300 million US dollar-denominated bonds in Singapore with a three-year term and fixed interest rate of 6.25 per cent per year.
Asia Commercial Bank (ACB) ranked second with total issuance value of VND7.85 trillion while Vietnam International Bank (VIB) came third with VND5 trillion.
Other big players included LienVietPost Bank (LPB), Ho Chi Minh Development Bank (HDBank), An Binh Bank (ABB), Bac A Bank (BAB) and Southeast Asia Bank (SeaBank), each with issuance values of between VND2 trillion and VND4 trillion.
Tien Phong Bank (TPB) and Sai Gon-Hanoi Bank (SHB) also have plans to issue international bonds.
TPB announced a plan to issue $200 million in bonds this year while SHB is collecting shareholder opinions on a plan to raise capital through international bond issuance.
According to the report, banks are under pressure to raise capital to ensure their capital adequacy ratios to meet the Basel II standards, and issuing bonds is one of the most effective ways to raise capital.
Apart from banks, real estate companies also actively sought capital in the bond market. Big names included Vinpearl JSC, Novaland Investment, Tan Lien Phat Sai Gon Business Real Estate Co Ltd, Hung Thinh Land JSC and Ngoc Minh Real Estate Development Investment Co Ltd with issuance values of between VND1 trillion and VND2 trillion each.
In June and July, there were 44 bond issuers including eight banks, 17 realty companies and two securities companies. The remaining 17 companies that issued bonds were from different sectors.
