Corporate bonds ‘cooling down’ in September

2 min read

After businesses racing to issue private bonds before Decree 81/2020 / ND-CP takes effect from September 1, the primary corporate bond market “cooled down” in September. According to the Hanoi Stock Exchange (HNX), the total value of private bond issuance in September reached 16,250 billion dong, down sharply from the record number of 83,800 billion dong in August.

trai-phieu-thang9-1616-1602734144.png

Unit: billion dong

The banking group accounted for 80% of the value of bonds successfully issued in September with 13,170 billion VND, only VIB was 3,500 billion VND; OCB, Agribank, SHB 2,000 billion VND each unit.

In which, bond lots of Agribank, BIDV, SeABank and TPBank have a term of 7 years or more – eligible to supplement tier 2 capital. Other banks mostly have 3-year term.

bank-thang9-9440-1602734145.png

Unit: billion dong

Apart from the banking group, SAM Holdings (HoSE: SAM) became the largest single bond mobilizer with 300 billion dong, 24-month term, fixed interest rate of 11% / year. The bond is secured by 24 million shares of Binh Duong Production – Import – Export Corporation (UPCoM: PRT) and 20 million shares of Phu Tho Tourist Service Joint Stock Company (UPCoM: DSP).

As for international bonds, in September, it was recorded that Phu My Hung Development Company Limited successfully issued USD 75 million to investors in the US, equivalent to VND 1,732 billion, 7-year bonds. This is most likely to be issued to IFC – a member of the World Bank Group (WB).

At the beginning of October, this enterprise continued to successfully issue USD 80 million (VND 1,850 billion) of 5-year bonds and listed on the Taipei Stock Exchange (TPEx), interest rate on Libor USD 3 bonds month plus 1.2% / year.

Thus, from the beginning of the year until now, this business has mobilized a total of nearly 4,500 billion dong of bonds in the international market.

Phu My Hung is the investor of the Phu My Hung urban area project, District 7 – one of the most modern and largest urban areas in Ho Chi Minh City.

Source: ndh.vn – Translated by fintel.vn