The Hanoitimes - Vietnam’s corporate bond market is expected to boom in the near future, taking into account high liquidity and growth rate of the bond market, as well as favorable legal framework. Vietnam’s enterprises rely heavily on credit loans from banks, but as the number and scale of enterprises on the stock market are growing rapidly, the country requires a high growing corporate bond market, according to economist Chau Dinh Linh. Source: adb.bond.online. The high demand for long-term assets investment from other economies and the upcoming Decree 163, which stipulates the relaxation of issuance conditions to help enterprises raise capital through the bond issuance, making the bond market an urgent priority, Linh was quoted as saying by newswire CafeF. As of September 2018, total value of bond issuance in the corporate bond market reached VND79.51 trillion (US$3.42 billion), up 83% compared to the same period of 2015 at VND43.5 trillion … [Read more...] about High growing corporate bond market is priority for Vietnam: Expert
Corporate bonds
Regulations on corporate bond issuance
Illustration photo Accordingly, enterprises which issue corporate bonds are responsible for capital borrowing, capital efficiency, and debt payment. Enterprises are allowed to issue private corporate bonds to implement their programs, investment projects; expand capital scale; restructure debts. However, they are obliged to make specific announcements to investors. Spending of capital mobilization from corporate issuance must ensure accurate targets and information disclosure. The new decree also regulates buying of corporate bonds ahead of time and bond swapping in favor of debt reduction or restructuring. In Viet Nam, besides the Government bond market which is gradually stabilizing and become a helpful tool for the restructuring of public debts, the corporate bond market is emerging as a potential channel to mobilize medium and long term capital for the economy. According to the statistics from the Ministry of Finance, by the end of 2017, the … [Read more...] about Regulations on corporate bond issuance
Corporate bond issuance market sees significant changes
VietNamNet Bridge - Big changes can be seen in the corporate bond market, from issuers and issuance strategies to buyers. Some large real estate firms successfully issued corporate bonds In the past, issuing corporate bonds was done justly by large corporations. Big changes can be seen in the corporate bond market, from issuers and issuance strategies to buyers. The 5-year bond is US dollar denominated, convertible into ordinary shares with the initial price of VND74,750 per share, or 15 percent higher than the reference price on the day of issuance. The bond has the interest rate of 5.5 percent per annum and payments are made every six months. RELATED NEWS Bond market gets a promising start To raise funds, large corporations prefer bonds to bank loans Mai Thanh … [Read more...] about Corporate bond issuance market sees significant changes
Central bank tightens banks’ corporate bond purchase
Banks will be prohibited from buying bonds for the purpose of restructuring the issuers’ existing loans. (Photo: VNA) Hanoi (VNS/VNA) – The State Bank of Vietnam has tightened regulations on corporate bond purchase by credit institutions and foreign banks’ branches. Under Circular No. 15/2018/TT-NHNN issued on June 18, which revises Circular No. 22/2016/TT-NHNN dated June 30, 2016, the central bank prohibits them from buying bonds for the purpose of restructuring the issuers’ existing loans, effective from August 2 this year. The central bank also stipulates that for corporate bond purchase, credit institutions and foreign banks’ branches must have an internal credit rating system besides the system to rate the bond issuers. They are also required to issue internal regulations on the purchase of corporate bonds in accordance with the current legal regulations. Accordingly, internal … [Read more...] about Central bank tightens banks’ corporate bond purchase
SBV tightens corporate bond purchase by banks
State Bank of Viet Nam has tightened regulations on corporate bond purchase by credit institutions and foreign banks’ branches. Under Circular No. 15/2018/TT-NHNN issued on Monday, which revises Circular No. 22/2016/TT-NHNN dated June 30, 2016, the central bank prohibits them from buying bonds for the purpose of restructuring the issuers’ existing loans, effective from August 2 this year. The central bank also stipulates that for corporate bond purchase, credit institutions and foreign banks’ branches must have an internal credit rating system besides the system to rate the bond issuers. They are also required to issue internal regulations on the purchase of corporate bonds in accordance with the current legal regulations. Accordingly, internal supervision regulations on corporate bond purchase, especially bonds issued for the purpose of implementing programmes and projects in areas of potential risk as identified by the assessment of credit institutions and foreign … [Read more...] about SBV tightens corporate bond purchase by banks