VIETNAM, May 11 –
Buildings of Gamuda City, an urban project in Hà Nội. In the first four months of this year, real estate companies were the leading group in terms of bond issue value with VN28.85 trillion, accounting for 37.35% of the total value of bonds issued during of the period. Photo VNA/VNS
HÀ NỘI – The tightening of capital flows in the real estate sector prompted real estate companies to suspend bond issuance in April.
This is according to data announced by the Việt Nam Bond Market Association (VBMA) in April.
The VBMA said that as of the end of April 29, the market had 23 private placement tranches of bonds worth 16.47 trillion VNĐ ($717.9 million) during the month.
The majority of companies issuing bonds in April were commercial banks worth VN14.94 trillion, accounting for 90.7% of the total issued value. In this group, MBBank was the largest issuing bank with 4.6 trillion VNĐ of 3-year bonds and Sacombank was behind with 2.5 trillion VNĐ of 3-year bonds.
The energy, transportation, manufacturing and financials groups also participated in private placements over the past month, but the volume only accounted for less than 10% of the total value issued.
Notably, according to VBMA statistics, in April there were no bond issues by real estate companies. This contrasts with March, when real estate companies still led with 46.7% of the total value of bonds issued during the month.
Since 2019, real estate companies have consistently been among the group of companies with the highest value of corporate bonds issued monthly, quarterly and annually. However, since the beginning of the year, after the policy of tightening capital inflows into this sector, the value of real estate company bonds has fallen sharply.
In late 2021 and early 2022, the Securities Commission issued corporate bond sanctions against three companies, VsetGroup and Apec Group and VIS Securities Company.
At the beginning of April this year, the management agency announced the cancellation of nine bond issues, totaling VNĐ10 trillion, from a group of Tân Hoàng Minh Group companies. Shortly after, the Ministry of Public Security also issued a decision to prosecute and detain Đỗ Anh Dũng, Chairman of Tân Hoàng Minh Group, and six related persons for fraud and appropriation of property.
In January, real estate was still the group with the highest issue value with VN14.47 trillion, accounting for more than 55.8% of the total value issued during the month.
In February, the issue value of this group fell sharply as no issues were registered. The figure reached 1.69 trillion VNĐ in March. And in April, the market recorded no bond issues.
However, according to the VBMA, in the first four months of this year, real estate companies were still the leading group in terms of bond issue value with 28.85 trillion VNĐ, accounting for 37.35% of the value total bonds issued over the months. .
It was followed by the banking group with VN24.39 trillion, accounting for 31.57% of the total issued value. VNS