Banking sector remains largest bond issuer in 9M

The banking sector was the largest issuer of corporate bonds in the first three quarters of 2024 with bond value worth over VND245.4 trillion ($9.8 billion), surging 188% compared to the same period last year, and accounting for 74% of the total, according to the MB Securities (MBS).

Joint stock commercial banks that recorded the biggest value of bond issuance include ACB with VND29.8 trillion ($1.19 billion), Techcombank VND26.7 trillion ($1.06 billion) and OCB VND24.7 trillion ($988 million).

The annual average interest rate was 5.6%.

In September alone, the sector accounted for 85% of the total amount of corporate bond issuance which was estimated at over VND71.6 trillion ($2.8 billion).

Joint stock commercial banks are believed to increase the issuance of corporate bonds in order to enhance their mid- and long-term capital sources to meet increasing capital demand from businesses.

The MBS forecast that the issuance of corporate bonds in the fourth quarter will be more robust as businesses’ capital demand expected to rise significantly amid the context of the “warmer” real estate market and increasing need for production and trade expansion following the economic recovery.