More than VNĐ9.1 trillion (US$391 million) worth of corporate bonds were issued in the first quarter of 2019, up 222 per cent year on year. — Photo tapchitaichinh.vn/
HÀ NỘI — More than VNĐ9.1 trillion (US$391 million) worth of corporate bonds were issued in the first quarter of 2019, up 222 per cent year on year.
The Refrigeration Electrical Engineering Corporation (HoSE: REE) had the highest value of corporate bond issuance with VNĐ2.32 trillion.
REE’s bonds will mature in 10 years with annual yield rate of 7 per cent.
HCM City Infrastructure Investment JSC (HoSE: CII) issued 10-year bonds worth VNĐ1.15 trillion at an annual yield rate of 7.2 per cent.
According to the research division of SSI Securities Inc (SSI), the value of corporate bond issuance this year has increased because firms need new channels to raise capital instead of looking for bank funding.
The State Bank of Việt Nam (SBV) has recently granted a maximum 15 per cent credit growth rate a year for some commercial banks that have met Basel II standards.
Other banks that do not meet Basel II standards will have maximum credit growth rate of 10-13 per cent a year.
Meanwhile, the SBV has already asked commercial banks to lower the rate of short-term capital used for medium- and long-term lending from 45 per cent to 40 per cent, starting in 2019.
Việt Nam’s corporate bond market is expected to improve in the future as more international investors are eyeing local businesses for their higher quality and performance. — VNS