Cref bond market

Vinhomes Ocean Park 2 in Hung Yen Province. Hung Yen Urban Investment and Development Co issued two lots of bonds worth total VND7.2 trillion on March 16 with collateral of property rights arising from business cooperation contracts at Vinhomes Ocean Park 3 project. — Photo courtesy of Vinhomes The corporate bond market is showing signs of recovery after a prolonged period of inactivity with a notable increase in both the number of issuers and value of issuance. Data on the Ha Noi Stock Exchange showed as of March 24, eight companies issued bonds worth more than VND23.8 trillion (over US$1 billion), of which real estate firms dominated the market with total issued value of VND19 trillion, accounting for 80 per cent of total value. This number was a significant increase compared to the value of VND500 billion in February and VND110 billion in January. On March 16, two realty firms – Hung Yen Urban Investment and Development Co Ltd and Southern Star Urban Development and … [Read more...] about Corporate bond issuance surges in March after prolonged inactivity

Vinhomes Ocean Park 2 in Hung Yen province. Hung Yen Urban Investment and Development Co issued two lots of bonds worth total 7.2 trillion VND on March 16 with collateral of property rights arising from business cooperation contracts at Vinhomes Ocean Park 3 project. (Photo courtesy of Vinhomes) Hanoi (VNS/VNA) - The corporate bond market is showing signs of recovery after a prolonged period of inactivity with a notable increase in both the number of issuers and value of issuance. Data on the Hanoi Stock Exchange showed as of March 24, eight companies issued bonds worth more than 23.8 trillion VND (over 1 billion USD), of which real estate firms dominated the market with total issued value of 19 trillion VND, accounting for 80% of total value. This number was a significant increase compared to the value of 500 billion VND in February and 110 billion VND in January. On March 16, two realty firms – Hung Yen Urban Investment and Development Co Ltd and Southern Star Urban … [Read more...] about Corporate bond issuance surges in March after prolonged inactivity

Pham Hong Son, vice chairman of SSC, delivered a speech at the event on Tuesday in Ha Noi. — Photo courtesy of JICA The capacity of the State Securities Commission (SSC) and three stock exchanges in market management and supervision has been enhanced as a result of a collaboration project with the Japan International Cooperation Agency (JICA), an SSC leader said on Tuesday. From April 2019 to March 2023, the technical cooperation project “Capacity Building on Improving Fairness and Transparency of Vietnamese Equity Market” aims at ensuring publicity and transparency, strengthening market surveillance and inspection, supervision of market intermediaries, listing and public offerings in line with international standards, and raising awareness on investor protection among listed companies. With the intention to cooperate with counterparts to develop the best practices for the stock market, the project conducted a detailed initial survey on the Vietnamese market, grasped issues and … [Read more...] about Vietnamese stock market’s publicity and transparency improved

Samples of corporate bonds issued by companies. — Photo vneconomy.vn Commercial banks that underwrite and sell corporate bonds have to buy them back if investors so demand, the central bank has said. It followed a meeting with voters (members of the public) the State Bank of Viet Nam (SBV) held in HCM City amid the ongoing bond market troubles. Besides asking for underwriting banks to take responsibility for redeeming bonds, the voters also urged the SBV to tighten inspection of credit institutions to ensure they comply with regulations while investing in bonds. The SBV recently raided 11 banks and fined a number of them for violating regulations related to bond purchases. Under current regulations, banks must have an internal credit rating system and can only buy bonds if their bad debts ratio is below 3 per cent. For bonds sold in the domestic market, when issuers cannot pay in full and on time the bond principal and interest, they must negotiate with bondholders … [Read more...] about Banks underwriting bonds should buy back bonds: central bank

Illustrative image (Photo: VNA) Hanoi (VNS/VNA) - Commercial banks that underwrite and sell corporate bonds have to buy them back if investors so demand, the central bank has said. It followed a meeting with voters (members of the public) the State Bank of Vietnam (SBV) held in Ho Chi Minh City amid the ongoing bond market troubles. Besides asking for underwriting banks to take responsibility for redeeming bonds, the voters also urged the SBV to tighten inspection of credit institutions to ensure they comply with regulations while investing in bonds. The SBV recently raided 11 banks and fined a number of them for violating regulations related to bond purchases. Under current regulations, banks must have an internal credit rating system and can only buy bonds if their bad debts ratio is below 3%. For bonds sold in the domestic market, when issuers cannot pay in full and on time the bond principal and interest, they must negotiate with bondholders for extending the term … [Read more...] about Banks underwriting bonds should buy back bonds: Central bank

A property project umder construction in downtown Ha Noi. — VNA/VNS Danh Lam There have been positive signs for the property market's recovery, said industry experts and economists. In an earlier development, for the first time in the last two years, the central bank decided to cut interest rates by 1 per cent, bringing the discount rate from 4.5 per cent to 3.5 per cent, overnight rate for inter-bank from 7 per cent to 6 per cent annually. According to the central bank, average inter-bank overnight rates have fallen by as much as 0.8 per cent, to 2.7 per cent on March 20, marking the first dip under 3 per cent since the end of August last year. Economist Can Van Luc, a member of the national finance and monetary council, said a dip in interest rates would likely result in much-needed improvements in the property market. Luc said it might translate into lower prices as investors gained access to lower-interest loans while giving them a financial boost to finish ongoing … [Read more...] about Property market stay hopeful as interest rates dip

In an earlier development, for the first time in the last two years, the central bank decided to cut policy interest rates by 1 percentage point, bringing the discount rate from 4.5% to 3.5%, overnight rate for inter-bank from 7% to 6% annually. According to the central bank, average inter-bank overnight rates have fallen by as much as 0.8%, to 2.7% on March 20, marking the first dip under 3% since the end of August last year. Economist Can Van Luc, a member of the national finance and monetary council, said a dip in interest rates would likely result in much-needed improvements in the property market. Luc said it might translate into lower prices as investors gained access to lower-interest loans while giving them a financial boost to finish ongoing projects or start new projects. In addition, a lower rate might give buyers more confidence to make purchases and improve market attitude in general as many potential buyers were sitting on the fence waiting for prices to drop … [Read more...] about Property market stays hopeful as interest rates dip

A bond batch worth VND3 trillion ($127.17 billion) belonging to Masan Group, the large conglomerate that includes WinMart and Techcombank as its subsidiaries, saw interest and principal payments paid on time in March 2023. The bond batch was issued in 2020 and advised by Techcom Securities (TCBS). TCBS are set to launch iBond Protect later this month with payment guarantees from Techcombank to ensure protection for investors. This is helpful timing as the market is in the beginning phase of recovery. TCBS will implement a private placement of shares with Techcombank for an amount greater than VND 10 trillion ($424 million) to raise capital in 2023. Currently, TCBS's capital adequacy ratio is at the top of the list and is well above the regulatory requirement of 220 per cent. In December 2022, TCBS signed an unsecured loan syndication contract worth $125 million, bringing the total mobilised value of their exposure to the international capital market to more than $300 million … [Read more...] about 500 bond codes issued by TCBS have been paid in full and on time

Vietnam’s property market is now in a state similar to that of 2013, when transactions plunged and major changes in policies were needed to ignite a "boom" in sales, said Nguyen Quoc Anh, deputy CEO of property listing platform Batdongsan. Back then the National Assembly approved changes in the land law and issued a VND30 trillion ($1.27 billion) credit package with interest rates of 5-6% annually to boost social housing sales. The decisions proved successful as transactions were resumed, he said. Similar policies are needed now, including providing new credit packages and maintaining a credit growth quota of 15-16% or even higher, Anh added. Some such policies are already being implemented. The State Bank of Vietnam (SBV) recently lowered its policy rates to increase liquidity and support economic growth, signaling that a "turnaround" may be seen in the property market in the second quarter next year. In 2013 credit growth jumped from 7% to 12%, which helped boost the … [Read more...] about Property market may heat up toward the end of 2024: insiders

Asian markets bounced Tuesday from the previous day's rout, with lenders boosted by easing concerns of another financial crisis, while focus turned to the Federal Reserve's policy decision later in the week. The panic that characterised trade over the past 11 days appeared to have faded after authorities in leading economies pledged support for depositors and troubled banks following the collapse of Silicon Valley Bank and Signature Bank in the United States. Still, the takeover of troubled Credit Suisse by UBS for $3.25 billion fanned concerns about what could be next on the chopping block, and analysts warned it was too early to say that the crisis was over. The move to save Credit Suisse aimed to prevent a wider crisis as it is among the 30 global banks considered "too big to fail". All three main indexes on Wall Street ended on the front foot -- with the Dow more than one percent up -- while European markets were also comfortably higher, helped by promises of … [Read more...] about Asian markets rebound as bank fears ease, Fed decision in view