Large corporations increase borrowing through bond issuance
A report from the Hanoi Stock Exchange (HNX) showed that the biggest corporate bond issuers in H1 were enterprises related to the richest billionaires.
As many as 130 enterprises issued corporate bonds in H1, mobilizing VND156.327 trillion worth of capital through 818 issuance campaigns.
Credit institutions and real estate firms had the biggest bond value issued, which accounted for 30.3 percent (VND47.347 trillion) and 29.2 percent (VND45.592 trillion), respectively, of total bond value.
The issuer with the highest bond value issued since the beginning of the year is BIDV (VND15.168 trillion, 34 issuance campaigns).
The issuer who also raised over VND10 trillion worth of funds from bond issuance in the last half of year was Vinhomes, a real estate developer (VND12 trillion, 71 issuance campaigns).
They were followed by large realtors and bankers such as TNR Holdings Vietnam (VND9.716 trillion, 200 issuance campaigns), HDBank (VND8.5 trillion, 10 issuance campaigns), Sovico (VND8 trillion, 69 campaigns) and VP Bank (VND7 trillion, 12 campaigns).
|A report from the Hanoi Stock Exchange (HNX) showed that the biggest corporate bond issuers in H1 were enterprises related to the richest billionaires.|
The value of the bonds issued by these large corporations alone accounted for 40 percent of total value of the bonds.
The other big issuers included OCB (VND3.935 trillion), VIB (VND3 trillion), SHB (VND2.3 trillion) and Bac A (VND2.2 trillion).
Analysts noted that the businesses belonging to the dollar billionaire Pham Nhat Vuong were the biggest issuers, with VND15.05 trillion worth of bonds issued so far this year.
Besides Vinhomes, the other two big issuers related to Vingroup were Green City Development JSC and Vincom Retail, which issued VND2 trillion and VND1.05 trillion worth of bonds, respectively.
The other big group of issuers was the one owned by Tran Anh Tuan and his wife Nguyen Thi Nguyet Huong. While TNR Holdings issued VND9.716 trillion worth of bonds, TNLease JSC has also mobilied VND3.9 trillion worth of bonds so far this year.
Meanwhile, the two enterprises related to billionaire Nguyen Thi Phuong Thao, including Sovico and Phu Long Real Estate, mobilized VND10.4 trillion worth of capital in total through bond issuance. The amount doesn’t include the VND8.5 trillion that HD Bank received earlier this year.
SSI Research estimated that the amount of bonds that private investors have bought so far this year is about VND22.7 trillion, or 15 percent of total bond value, higher than the 10 percent of the last year.
It also estimated that the bonds in circulation have total value of VND783 trillion, including VND398 trillion worth of bonds held by commercial banks, as of the end of Q1. The figure is VND385 trillion for non-credit institutions and individual investors.
The Ministry of Finance and experts have warned investors of the risks they face when buying corporate bonds. There is no independent agency that gives credit ratings to issuers in Vietnam.
The Vietnamese stock market may have found a new equilibrium in current price areas, according to Mirae Asset.
The stock market celebrates its 20th anniversary this month. It has already made great contributions to Vietnam’s economic development while its future prospects look very bright due to its fundamentals.