The recent report of MB Securities Company (MBS) stated that the size of cooperate bond market has grown by nearly three times in the last four years. From the beginning of the year, businesses have issued nearly 60 trillion dong of corporate bonds, of which the finance sector such as banking, securities and realty accounted for 72 percent.
Banking sector takes the lead with bond issuance value of 18.2 trillion dong, accounting for 32 percent. In particular, Vietnam Prosperity Commercial Joint Stock Bank (VPB) issued 5.9 trillion dong of three-year bonds with fixed interest rates from 6.4 percent to 6.9 percent per annum, accounting for up to 32 percent; followed by HCM City Development Commercial Joint Stock Bank with three issuances of two to three-year bonds and a value of three trillion dong.
Real estate, construction and infrastructure sector ranked the second in terms of the amount of bonds issued with 16.230 trillion dong, accounting for 30 percent of the total corporate bonds issued since the beginning of the year. This sector recorded the highest coupon interest rate, popularly above 10 percent per annum. Phat Dat Real Estate recorded the highest coupon rate with 14.5 percent per annum.
The corporate bonds of real estate and construction businesses often have secured assets in the form of land use rights, with a popular term of two years, but can reach 10 years, such as the case of HCM City Infrastructure Investment Joint Stock Company (CII).
Securities companies raised 5.1 trillion dong of bonds by issuing bonds in the first six months of the year, with coupon interest rate of eight percent to 11.3 percent per annum and popular term of one to three years. In particular, VNDirect Securities Joint Stock Company is taking the lead with 1.460 trillion dong of bond issuance with terms ranging from one to three years and interest rates of 9.5 percent to 11.3 percent per annum, of which 660 billion dong are convertible bonds.
