More than VND311 trillion in bonds will be raised in 2023

In December 2023 alone, 55 corporate bonds were issued individually, with a total value of VND 42,806 billion. According to the latest statistics from the Vietnam Bond Market Association (VBMA), the total amount of corporate bond issuance in 2023 will be 311.24 trillion VND.

Specifically, it includes 29 public issuances worth VND37,071 billion (accounting for 11.9%) and 286 private issuances worth VND275,028 billion (accounting for 88.1%).

>> LPBank (LPB (HM:)) successfully raised VND9.75 trillion in bonds

In December 2023 alone, 55 corporate bonds were issued individually, with a total value of VND 42,806 billion. The average interest rate of this issuance is 7.06%/year, and the average term is 5.97 years.

In December, companies bought back 32,677 billion VND in bonds, a decrease of 50.4% from the same period in 2022.

According to VBMA, approximately VND277,065 billion in bonds are expected to mature by 2024. Among them, 41% of the value of mature bonds belongs to real estate groups, accounting for nearly 113,486 billion VND, followed by banking groups, accounting for nearly 54,497 billion VND (accounting for 20%).

The number of bonds with delayed interest payments in December 2023 has decreased compared with the beginning of the year, with only 6 new bond codes announcing delayed interest/principal payments, with a total value of VND 545.7 billion.

>> LPBank (LPB) successfully raised VND9.75 trillion in bonds

When commenting on the corporate bond market, Deputy Minister of Finance Nguyen Duc Chi affirmed that after the promulgation of Decree No. 08/2023/ND-CP, the corporate bond market showed signs of improvement, and investor psychology gradually improved and became stable again.

Some companies took the initiative to repurchase bonds and restructure their funding sources. Bond restructuring negotiations continued, helping issuers have more time to resume production and operations, create new assets, generate cash flow to repay debts, and alleviate liquidity pressure. The number of issuances increased month by month.

>> Banks can buy back corporate bonds immediately after selling them