Enterprises issued 171.5 trillion dong of bonds totalled in the first six months of 2020, increasing by 61.3 percent year-on-year, outstripping the 37%-growth-rate of 2019.
Top1 issuance was in real estate
In 2019, real estate businesses mobilised 57.1107 trillion dong by issuing bonds, accounting for 19.25 percent of the total value of the market of corporate bonds. In 2020, real estate businesses would continue to accelerate mobilisation through this channel. Particularly in Q2/2020, the amount of bond issued by real estate businesses reached 47.2 trillion dong, nearly double that in Q1/2020 and the same period of 2019, making up 80 percent of the total amount of corporate bonds issued in the quarter.
In the first six months of 2020, there was 71.6 trillion dong of real estate bonds issued, accounting for 41.8 percent of the total issue and 57.5 percent higher compared to the first six months of 2019. So in terms of total issuance, the real estate sector in the first six months of 2020 had doubled its proportion in the whole of 2019. Also, the value of mobilisation in the first half of this year had surpassed the value of the issue achieved for the whole year.
Leading enterprises that issued large batches of bonds worth trillions of dong were the top one trending companies in the corporate bond market. The analysing centre of SSI Securities Corporation (SSI Research)’s statistics named the top five enterprises, including Vinhomes, TNR Holdings, TNL Property Rental and Investment JSC, Ha Long Sun, Saigon Glory, Binh Hai Golf Investment and Development. In particular, Vinhomes and TNR Holdings left a long gap in the value of mobilised via bonds, compared to the rest of the following businesses, with 12 trillion dong and 8 trillion dong, respectively.
Among 19 top-trending real estate companies that issued bonds in the first six months of this year with a value of over 1 trillion dong, also according to SSI’s statistics, the bond interest rate of the top three lowest mobilisation phase belonged to Ha Long Sun (8.65 percent per year), Green City (9.50 percent per year) and Vinhomes (9.65 percent per year). This was also quite consistent with the general rule in the bond market when the deposit interest rates that issuers had to pay usually depended on prestige; brand value; corporate capacity adding the type of bonds; or without collateral adding bond flexibility.
In SSI’s statistics, the bond interest rates of real estate businesses in the first six months of the year were not too fluctuating compared to 2019. Although the interest rate on the market due to the COVID-19 outbreak had a significant adjustment, that adjustment was only for borrowers who still ensured cash flow, had large collateral and priority areas. Accordingly, the deposit interest rate of this sector was the highest at 12.50%, and an average of above 10%. SSI separately analysed the data in Q2, the average interest rate of this sector was about 10.42%, lower than that of Q1/2020 (10.77%). On the visual aspect, it could be seen that in the real estate bond interest rate, there were hardly cases of large value issues with a spike of 14 percent to 15 percent as in 2019.
Top1 buyers were banks and individual investors
Meanwhile, on the buying side, SSI said that individual investors bought 14.5 trillion dong of real estate bonds on the primary level, accounting for 20 percent of the total issued volume in the first six months of 2020. In particular, investors bought bonds with three-to-five-year notes, a fixed interest rate of 10.9 percent per year of TNR Holdings and TNL of 12.2 trillion dong divided into 251 lots of small issuance.
In addition to new issuance, these two companies also continually repurchased bonds issued in previous years, pre-maturity resellers were also mostly individual customers. Thus, even though most of them were bonds with no assets guaranteed, the liquidity of bonds issued by TNR and TNL was quite high, the issuing interest rate in the first six months of 2020 was also higher than the average 10.26 percent of 2019.
The familiar buying group in the market was the group of commercial banks also buying 28.2 trillion dong of real estate bonds on the primary market, accounting for 40 percent of the total issued volume in the first six months of 2020. Some large purchased by commercial banks were issued by Kita Invest Joint Stock Company, Green City Development Joint Stock Company, City Garden Joint Stock Company, Ha An Real Estate Business Investment Joint Stock Company, Saigon Glory Company Limited, AQUA City Company Limited.
According to the statistics table, the leader of the buying side was the commercial banks in terms of bonds on the whole market (not only real estate). The bank purchased a total of 38.4 trillion dong of corporate bonds of non-credit institutions on the primary market in the first six months of 2020, equivalent to 31 percent of total issuance (excluding banks) of the whole market school. Commercial banks focused on buying real estate bonds and bonds of energy companies. The actual number of corporate bonds purchased by commercial banks might be significantly larger because many issued lots were only generally recorded as buying by domestic organisations. According to the financial reports of commercial banks, by the end of Q1/2020, the amount of bond from economic organisations held by 18 listed commercial banks was 165.2 trillion dong an increase of 37.2 trillion dong compared to the end of 2019, of which the biggest number belonged to Vietnam Technological and Commercial Joint-Stock Bank (Techcombank), Vietnam Prosperity Joint-Stock Commercial Bank (VPBank), mentioned SSI report.
Top1 underwriting advice belonged to Techcombank Securities Joint Stock Company (TCBS)
Not surprisingly, in the group to buy primary corporate bonds, TCBS and VPBank Securities Company (VPS) were familiar units named in corporate bond underwriting consultancy. In which, TCBS continuously for many years was the top1trending of this operation in the whole market. TCBS’s market share in six months of 2020 was accounted for 23.8%, far ahead of 9.7 percent of SSI and other businesses.
Besides, of course, commercial banks were both the buyers but also the major issuers. In six months of 2020, the banking group achieved a total value of 47.3 trillion dong, accounting for 27.6 percent and increasing by 31.2 percent over the same period last year, ranking top2trending issuance.
Top3 continued to belong to the energy and minerals group with an issuance value of 10.5 trillion dong (accounting for 6.1 percent 5.3 times as much as the same period in 2019). The rests were infrastructure development (1.6%), financial services companies (1.7%) and other businesses.
SSI’s report also indicated that more than 90 percent of the issuance in the first six months of 2020 belonged to bonds offered for private sale. According to experts, this type required little disclosure and no issuers to had a profit of the previous year, which also usually bought greater risks to investors, especially the individual investor group.
With a little time less than two weeks until September 1, 2020, when Decree 81/2020/NQ-CP amending and supplementing Decree 163/ND-CP came into effect, the primary bonds market was expected to continue to bustle private offering to race before being subject to stricter regulations.
