Total value of privately placed corporate bond issuance reached nearly $1.8 billion in July

According to an announcement from the Ministry of Finance on August 5, total value of privately placed corporate bond issuance in July this year (between July 1 – 26) reached around VND45 trillion (nearly $1.8 billion), down 15% against the previous month, but up 57% as compared to the same period last year.

This figure brought the total value of privately placed corporate bond issuance in the first seven months of the year (as of July 26) to VND161.5 trillion (nearly $6.42 billion), a 2.6-fold increase year-on-year.

The banking sector accounted for 67.5% of the total, while the real estate sector accounted for 24%, though the latter offered an interest rate of 12% per year, much higher than that from the former.

According to the Ministry of Finance, the total value of repurchased corporate bonds before maturity amounted to VND88.8 trillion (more than $3.5 billion) in the 7-month period, down 36% as compared to the same period last year.

The privately placed corporate bond transaction system has been well improved since it was put into operation in July 2023. As of the end of June 2024, average value of privately placed corporate bonds transacted through the system stood at nearly VND4,093 trillion (more than $162 million) per trading session.

As of the end of June 2024, there have been 997 privately placed corporate bond codes from 259 issuers, with registered transaction value of more than VND706.2 trillion (more than $28 billion).