So far in the third quarter at least eight brokerages have sought to raise VND4 trillion ($175.15 million) through bonds, VnExpress data shows.

VNDirect has announced it would raise VND2 trillion in two issuances this year and early next.

The bonds would be offered to the public with a maturity of three years. Money raised will be used to fund margin loans.

Viet Dragon Securities Corporation has also said it would raise VND1.5 trillion through bonds.

The bonds will be privately issued in four issuances from this month until November.

The company is set to use the money for margin loans and to trade bonds.

Other smaller brokerages have also made plans to issue bonds including HDB Securities with VND300 billion. Tan Viet Securities, MB Securities and APG all plan to raise VND200 billion.

Some of these companies offer a high coupon rate of 11.5-12.5 percent annually.

Bigger firms offer lower rates. VNDirect will pay 8.4 percent a year in the first year, while Viet Dragon pays 9.3 percent.

Rising interest in stock is the main reason why brokerages are issuing bonds, said Nguyen Nhat Cuong, deputy head of investment at Vietinbank Securities.

Trading value on the main bourse, Ho Chi Minh Stock Exchange (HoSE), during many sessions this year doubled or tripled year-on-year, which means many investors are looking to use margin in their investment, seeking higher profits, he said.

This is why brokerages are short of capital and need to raise more, he stated, adding the mobilization amount could rise even higher in future.