As the end of the year approaches, the corporate bond market is heating up with increasing issuance volume and attractive interest rates. Issuers continuously offer high interest rates to attract investors.
For the banking group, the industry group that accounts for the largest total issuance volume in the market, if in the first half of the year, the bond interest rate of this group was commonly at 4-6%/year, recently, many banks have pushed the bond interest rate above 6%/year, at a level significantly higher than the interest rate on customer deposits.
Some banks even issue bonds at an interest rate of 7-8% per year. Typically, BVBank offers 15 million bonds to the public at an interest rate of 7.9% per year. From the second year, the interest rate is equal to the reference interest rate plus a margin of 2.5%.
Similarly, at the end of August, HDBank also issued VND1,000 billion in bonds, with interest rates 2.8% higher than the average 12-month deposit rate of banks at the time of payment. The interest rate of HDBank bonds is commonly at 7.47%. Some banks' bond interest rates are also quite high, such as LPBank 7.58%; BAOVIET Bank 7.68%.
Other banks such as BIDV, VPBank, MB, BIDV, ACB, OCB... also have many separate bond issuances - exclusively for professional securities investors - with interest rates about 1-1.5% higher than deposits.
The industry group issuing the highest interest rate bonds at present is real estate, up to 10-12%/year. The market has just recorded two enterprises issuing large volumes: Phat Dat Real Estate Investment and Development Company Limited (VND 3,490 billion), interest rate of 12%; Truong Loc Real Estate Investment and Development Company Limited (VND 1,910 billion), interest rate of 12%/year.
Some other businesses are at a lower level but still much higher than other industry groups such as: Becamex IDC bond interest rate 10.2 - 10.5%, Kinh Bac 10.5%, Nam Long 9.78%.
Some industry groups with lower issuance volume such as securities, financial companies, bond interest rates are also quite attractive such as: Techcom Securities Corporation (TCBS) 7.92%, F88 Trading Joint Stock Company 11%.
Bond interest rates have been increasing continuously, about 2-2.5% higher than deposit interest rates, even higher for some industries. For the banking group, this channel helps banks balance the mobilization ratio and capital safety. Therefore, experts predict that banks will continue to increase bond issuance in the remaining time of this year to have more medium and long-term capital.
