Vinhomes, Masan secure first spot among top corporate bond issuers

By Duc Anh - Jun 22, 2019 | 02:32 PM GMT+7

TheLEADERThe first quarter saw the outstanding amount of local currency (LCY) corporate bonds reached some $4.34 billion, with growth declining 1.3 per cent quarter-on-quarter but rising 31.9 per cent year-on-year, according to ADB.

Vinhomes, Masan secure first spot among top corporate bond issuers
LCY bonds outstanding rose to $51 billion at the end of March.

The LCY C-bond market of Vietnam comprised issuances of 46 institutions, including private and state-owned enterprises in the fields of real estate, banking and finance, infrastructure, agriculture, manufacturing, and others. Most of the C-bonds are issued via private placement for which information is not publicly disclosed.

The top 30 LCY corporate issuers accounted for $4.15 million of the total C-bond amount, equivalent to 95.5 per cent of the total C-bonds issued by the end of March.

Vinhomes, a member of Vietnam’s largest private enterprise Vingroup, secured the first spot in the top 30 LCY corporate issuers with outstanding bonds amounting to VND12.5 trillion ($540 million) followed by Masan Consumer Holdings with outstanding bonds of VND11.1 trillion ($480 million). Together, these two firms accounted for 23.4 per cent of the total corporate bond stock at the end of March.

Vingroup, meanwhile, was on the third spot with outstanding bonds valued at VND9.6 trillion ($410 million), followed by VietinBank (VND8.2 trillion) ($350 million) and ACB (VND6.8 trillion) ($290 million).

In the first quarter, Refrigeration Electrical Engineering (REE) and Ho Chi Minh City Infrastructure issued VND2.318 trillion ($99.05 million) and VND1.150 trillion ($49.15 million) worth of C-bonds, respectively. Both issuances carried a long-term maturity of 10 years, with REE’s coupon rate at 7 per cent a year and Ho Chi Minh Infrastructure at 7.2 per cent a year.

C-bond issuance currently accounts for 8.4 per cent of the total LCY bond market in Vietnam.

Vietnam’s LCY bond market reached a size of VND1.193 trillion ($51 billion) at the end of March. Growth rose a marginal 0.7 per cent quarter-on-quarter in Q1 2019. Q4 2018 witnessed a 5 percent decline quarter-on-quarter. On a year-on-year basis, a 0.2 per cent contraction was recorded.