Customers make transactions at a VPBank branch (Photo courtesy of VPBank)Hanoi (VNS/VNA) - Banks have been the main player in the corporatebond market so far this year, with eight of the top 10 biggest issuers beingfinancial institutions.
The Vietnam Prosperity Bank (VPBank) topped the list with bond issuancereaching 12.86 trillion VND (552 million USSD) in value in the first sevenmonths of the year, the latest debt market report from MB Securities JointStock Company showed.
In July alone, VPBank successfully issued 300 million USD-denominated bonds inSingapore with a three-year term and fixed interest rate of 6.25 percent peryear.
The Asia Commercial Bank (ACB) ranked second with total issuance value of 7.85trillion VND while the Vietnam International Bank (VIB) came third with 5trillion VND.
Other big players included the LienVietPost Bank (LPB), HCM City DevelopmentBank (HDBank), An Binh Bank (ABB), Bac A Bank (BAB) and Southeast Asia Bank(SeaBank), each with issuance values of between 2 trillion VND and 4 trillionVND.
The Tien Phong Bank (TPB) and Sai Gon-Hanoi Bank (SHB) also have plans to issueinternational bonds.
TPB announced a plan to issue 200 million USD in bonds this year while SHB iscollecting shareholder opinions on a plan to raise capital throughinternational bond issuance.
According to the report, banks are under pressure to raise capital to ensuretheir capital adequacy ratios to meet the Basel II standards, and issuing bondsis one of the most effective ways to raise capital.
Apart from banks, real estate companies also actively sought capital in thebond market. Big names included Vinpearl JSC, Novaland Investment, Tan Lien PhatSai Gon Business Real Estate Co Ltd, Hung Thinh Land JSC and Ngoc Minh RealEstate Development Investment Co Ltd with issuance values of between 1 trillionVND and 2 trillion VND each.
In June and July, there were 44 bond issuers including eight banks, 17 realtycompanies and two securities companies. The rests were from different sectors.-VNS/VNA
VNA
