Banks buy back nearly 77,000 billion VND worth of bonds before maturity

August 22, 2023 05:54

According to the Vietnam Bond Market Association (VBMA), businesses have bought back VND695 billion worth of bonds from the beginning of August to the date of information announcement on August 11.

Banks buy back nearly 77,000 billion VND worth of bonds before maturity (Illustration photo)

The total value of bonds bought back by businesses before maturity from the beginning of the year to August 11 was VND145,267 billion (up 39% over the same period in 2022). Banking is the leading industry group in terms of repurchase value, accounting for 53% of the total value of early repurchases, equivalent to VND76,968 billion.

In the remainder of 2023, the total value of bonds due is VND127,816 billion. 49% of the value of bonds due to mature belongs to the real estate group with nearly VND62,657 billion, followed by the banking group with VND24,910 billion, accounting for 19.5%.

The Ministry of Finance's report on the corporate bond market on August 3 showed that from the beginning of the year to July 28, 36 enterprises issued private bonds with a volume of VND 62,300 billion, down 77.8% compared to the same period in 2022; of which, the majority were real estate enterprises (accounting for 54.2%), followed by credit institutions (accounting for 31.6%). 60.5% of the issued bonds had collateral.

According to the Ministry of Finance, in the context of market fluctuations, many businesses have proactively repurchased bonds before maturity to restructure capital sources, the volume of early repurchases was VND 135,300 billion, an increase of 56.3% over the same period in 2022.

Regarding bond issuance, VBMA said that as of the information announcement date of August 11, there were 4 separate issuances in August with a total value of VND 2,300 billion.

These issuances have an average interest rate of 9.8%/year, with terms ranging from 3-5 years. Accumulated from the beginning of the year to August 11, the total value of corporate bond issuance was recorded at VND97,488 billion, with 17 public issuances worth VND16,476 billion, accounting for 17.3% of the total issuance value and 76 private issuances worth VND81,012 billion, accounting for 83.1%.

According to VNA