According to the data the central bank’s finance and banking unit provided for the Daily, enterprises registered to sell nearly VND5.2 trillion worth of bonds via private placements as of March 27, of which VND450 billion worth had already been sold. There were few transactions on the secondary market as businesses favored the private placement method.
In 2013, Vietnamese firms issued an average of nearly VND10 trillion each quarter, a record high for the corporate bond market.
Last year, the unit saw 82 applications for corporate bond issuance via the private placements with a total registered value of over VND76.3 trillion. Of the figure, over VND39.9 trillion was issued.
According to a report released by Bao Viet Securities Joint Stock Co. on Wednesday, Ocean Group Company (OGC) has announced to issue VND980 billion worth of bonds via private placement this year. The three-year bonds carry a face value of VND1 billion each.
The firm plans to offer the unsecured bonds to less than 100 investors at VND1 billion each.
Kinh Bac City Development Shareholding Corp. (KBC) has announced to sell over VND1 trillion worth of convertible bonds via private placement. The bonds carry a face value of VND1 billion and a coupon of 1.5% per annum.
“We expect that the corporate bond market will improve next month due to some bond issuances. Corporate bonds are predicted to attract investors thanks to the interest rate difference of around 3.5 to 5 percentage points compared to government bonds with the same tenors,” Bao Viet said in the report.
As G-bond yields have plunged since November 2013, the market for this bond type has been less attractive. In addition, the value of G-bonds falling due between March and May was only VND13 trillion, or 12% of the total that will fall due this year.
Đăng ký: VietNam News
