Nearly 32,000 billion VND of corporate bonds were bought back before maturity in June

According to data compiled by the Vietnam Bond Market Association (VBMA) from HNX and SSC, as of the information announcement date of June 30, 2023, there were 13 private corporate bond issuances recorded in June with a total value of VND 8,170 billion.

Of which, real estate is the industry group with the largest issuance volume in the month with a total issuance value of VND 3,880 billion (accounting for 47.5%), followed by the banking group with VND 2,890 billion (accounting for nearly 35.4%).

Accumulated from the beginning of the year until now, the total value of corporate bond issuance is recorded at VND42,783 billion, with 7 public issuances worth VND5,521 billion (accounting for 12.9% of the total issuance value) and 35 private issuances worth VND37,262 billion (accounting for 87.1% of the total).

According to VBMA data compiled from HNX, as of the information announcement date of June 30, 2023, enterprises have repurchased VND 31,591 billion of bonds in June. The total value of bonds repurchased by enterprises before maturity accumulated from the beginning of the year to date reached VND 110,448 billion (up 39% over the same period in 2022).

In the remainder of 2023, the total value of bonds due is VND158,500 billion. The majority of the value of bonds due to mature belongs to the real estate group with VND80,952 billion, accounting for 51%; followed by the banking group with VND27,261 billion, accounting for 17.2%.

In the coming time, the corporate bond market is expected to receive two bond offerings.

Specifically, the Board of Directors of Nui Phao Mineral Exploitation and Processing Company Limited has approved a plan to issue up to VND1,000 billion in non-convertible, non-warrant, secured private bonds with a maximum term of 60 months.

In addition, ORS's Board of Directors has approved a plan to issue up to VND1,000 billion in non-convertible, non-warrant, unsecured private bonds with a maximum term of 60 months.

According to VBMA, on May 17, 2023, the Ministry of Finance issued Circular No. 30 guiding the registration, depository and trading of individual bonds in the domestic market, effective from July 1, 2023.

“The new regulation is expected to help increase liquidity in the secondary private bond market, while increasing transparency and standardization of this market,” VBMA said.

In addition, according to the synthesis of opinions of VBMA members, the regulation of a 3-month period from June 16, 2023 to complete the procedures for registration, depository and registration of transactions of outstanding corporate bonds issued under Decree 153 and Decree 65 is one of the concerns of market members, requiring specific instructions from the management agency to ensure implementation of the regulations in practice .

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