Corporate bond market bustling Hong Phuc By Hong Phuc - The Saigon Times Daily HCMC – The corporate bond market has become more active now that the interest rate has dropped, making the capital cost lower for those enterprises wanting to mobilize funds from the market. Many enterprises have gained success with large bond issuances. Vietnam Prosperity Bank (VPBank) and Vietnam National Coal and Mineral Industries Group (Vinacomin) have successfully issued VND2.5 trillion and VND5 trillion worth of long-term bonds respectively. Vinacomin’s issue is the biggest dong-denominated bond issue by a State-owned business group so far. In late August, Bank for Investment and Development of Vietnam (BIDV) sold over VND3.1 trillion worth of 10-year bonds that carry an annual coupon of 10.5% in the first five years and 11% in the remaining stage. Hoang Anh Gia Lai Company has also issued bonds for some large banks. Other large enterprises, State-owned groups and corporations also … [Read more...] about Corporate bond market bustling
Corporate bonds
Local corporate bond market still small
Local corporate bond market still small Hong Phuc By Hong Phuc - The Saigon Times Daily HCMC – The local corporate bond market is seen small compared to other Asian peers, with its outstanding balances totaling some VND70 trillion or only about 2.47% of the nation’s gross domestic product in 2012, said an official of the Ministry of Finance. Do Viet Dung of the Finance-Banking Department under the ministry told a recent seminar in HCMC that there were few issuances as investors had not shown interest in this financial commodity. The capital volume registered for corporate bond issuances by local companies totaled around VND19 trillion in the year’s first half, but the total amount worth of bonds really issued in the period was only VND8.3 trillion. Since 2012 when Decree 90 on corporate bond issuance came out, the finance ministry has received registrations for corporate bond issuance from about 60 companies with a total value amounting to VND60 trillion. Of this … [Read more...] about Local corporate bond market still small
Corporate bond information center in the offing
Hong Phuc With the technical assistance of International Finance Corporation, the association has hired experts to act as consultants for the scheme. The experts have worked with participants and State management agencies to prepare the scheme, said General Secretary Do Ngoc Quynh. "VBMA has submitted the scheme to the Ministry of Finance and is waiting for an official reply from the ministry to carry out this scheme. This is one of the great and challenging tasks for VBMA given the underdeveloped nature of the corporate bond market of Vietnam, from both the legal and the practical aspects," said Quynh. No one fully comprehends Vietnam's corporate bond market due to the lack of a unit providing information about both the primary and secondary markets. If the corporate bond information center that VBMA plans was put into operation, it would offer investors sufficient information about the market. Such a center would also help improve transparency, give the corporate bond … [Read more...] about Corporate bond information center in the offing
Corporate bonds look for light at tunnel’s end
This condition will restrict companies from expanding their investment projects by mobilising capital through bonds' issuance. Conditions for issuing corporate bonds are thought to be too tight for enterprises to use this capital mobilisation channel. The Ministry of Finance (MoF) is drafting a new decree to replace Decree 52/2006/ND-CP dated May 19, 2006 on the issuance of corporate bonds. Accordingly, joint stock companies, limited companies and state enterprises during conversion into limited liability or joint stock companies will be allowed to issue corporate bonds and bonds on international capital markets. Truong Thanh Duc, chairman of Basico Law Firm, said it was unnecessary to closely regulate bond issuance conditions. "The draft decree on private placement is applied for under 100 member joint stock or limited liability companies, whose influence on investors and the market is not remarkable. Therefore, conditions need to be easy for enterprises to issue bonds … [Read more...] about Corporate bonds look for light at tunnel’s end
HCMC developer sells $31 million in corporate bonds
A Ho Chi Minh City-listed infrastructure developer just sold VND500 billion (US$31 million) in corporate bonds. The Infrastructure Investment Joint Stock Company (CII) used Vietnam International Bank (VIB) and VIBSecurities as underwriters to sell the bonds. The underwriters unloaded the bonds on seven buyers at the face value of VND100,000 each. The seven-year bonds carry a coupon of 10.3 percent to be paid annually. This move was VIBank's first underwriting with a joint stock firm and has helped CII raise more capital to finance infrastructure projects like the Lu Gia and 152 Dien Bien Phu buildings in the city, and two residential areas in Cu Chi district. … [Read more...] about HCMC developer sells $31 million in corporate bonds