Analysts predict peak bond maturity pressure in the fourth quarter of this year, with the real estate sector facing the most significant burden at over 43% by October 4.
Companies issued 161.5 trillion VND (6.43 billion USD) worth of bonds during January-July, or 2.6 folds higher than the same time last year, the Ministry of Finance (MoF) said on August 5.
Total corporate bonds set to mature in 2024 will reach 329.5 trillion VND (13.5 billion USD), the highest in three years, according to a report by the Ho Chi Minh City Real Estate Association (HoREA).
Over 209.15 trillion VND (over 8.61 billion USD) was raised from the issuance of corporate bonds in the first 10 months of 2023, according to data compiled by the Vietnam Bond Market Association (VBMA) from the Hanoi Stock Exchange (HNX) and the State Securities Commission (SSC).
Since the issuance of Decree 08/2023/ND-CP on March 5, 2023, 15 businesses have issued 26.4 trillion VND in corporate bonds to the market. Almost no businesses could issue bonds to the market during the end of 2022 and the first two months of 2023.
The Ministry of Finance has conducted procedures to adjust and supplement the Government’s Decree 65 regarding the private issuance of corporate bonds, Deputy Minister Nguyen Duc Chi said at a government regular press conference in Hanoi on February 2.
A total of 420 private placements of corporate bonds worth approximately 244.6 trillion VND (10.43 billion USD) were made in 2022, accounting for 96% of the total issuance value and marking a year-on-year decrease of 66 %.
After strong growth in the previous quarter, Vietnam’s currency bond market contracted 0.2% due to a decline in the Government bond market and slower growth in corporate bonds.