More than 150 enterprises successfully issued bonds worth total 179.1 trillion VND (7.7 billion USD) in the first nine months of this year, a report on the Hanoi Stock Exchange bond market showed on October 8.

Techcombank issued 5 trillion VND (214.6 million USD) in bonds in September.
(Photo: cafef.vn)

The nine-month value is equal to nearly 80 percent of the total bond issuance value in 2018.

The figure is also lower than the total registered value of nearly 276.9 trillion VND (nearly 12 billion USD), which means nearly 98 trillion VND bonds were unsold.

In September, 28 companies made 60 issuances with total capital raised of 19.4 trillion VND (excluding international bond issues). Most bonds were three-year term with total value of 13.5 trillion VND.

Interest rates of bonds issued in September ranged between 6 percent and 11 percent per annum.

Banks were the main player in the bond market with total issuance value of 14.1 trillion VND in September, accounting for 72.78 percent of total market value. Real estate companies followed with 965 billion VND (4.97 percent) and securities firm with 413 billion VND (2.13 percent).

Bonds issued by banks also had the lowest interest rate, averaging only 6.71 percent per year.

Some companies with big issuance value in September included Techcombank (5 trillion VND), Orient Commercial Joint Stock Bank (1.7 trillion VND), Asia Commercial Bank (1.6 trillion VND), Saigon - Hanoi Bank (1.45 trillion VND), Sovio Holdings (1.1 trillion VND), Ho Chi Minh Development Bank (912 billion VND), Phu My Hung Development Corporation (900 billion VND) and Vietravel (700 billion VND).

According to a report by Saigon Securities Inc, instead of focusing on two- or three-year term bonds as in previous months, in the last two months banks had been stepping up to issue bonds with longer maturity such as five-year, seven-year and 10-year terms.

Longer-term bond issuers included Vietinbank, Bank for Investment and Development of Vietnam (BIDV) and Southeast Asia Commercial Joint Stock Bank (SeABank).

In September, Vietnam Prosperity Bank (VPBank) was the only enterprise to issue bonds internationally worth 300 million USD.