The corporate bond market is showing many positive signs with the issuance volume increasing sharply again and the interest rates becoming more and more attractive. The market has seen interest rates of up to 13.5% - the highest level this year.
Accordingly, VinFast Production and Trading Joint Stock Company has just completed the issuance of 2,000 billion VND in bonds with a fixed interest rate of 13.5%/year, term of 24 months, maturing on October 10, 2026. The interest payment period is 3 months/time.
This is the highest bond interest rate recorded for a new bond issuer this year. However, this is not the highest level recorded in the corporate bond market to date. In 2022 and 2023, VinFast issued bonds with interest rates of up to 14.5%/year.
Previously, the real estate - construction business group was known as the issuers with the highest bond interest rates in the market, up to 12-14%/year. In 2023, North Star Holdings Joint Stock Company issued bonds with an interest rate of 14%/year; Khai Hoan Land's bond lots had the highest interest rate of up to 13.5%...
However, this year, the highest bond interest rate of this group of enterprises is only 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: Oil and Gas Securities (8.9%), Bao Minh Securities (9.5%), Rong Viet Securities (8%), F88 Trading Joint Stock Company 11%...
For the banking group, which accounts for the overwhelming total issuance volume in the market, bond interest rates are currently at the lowest level, averaging around 4-6%/year. Recently, many banks have pushed bond interest rates above 6%/year, significantly higher than customer deposit interest rates.
Some banks even issue with interest rates of 7-8%/year such as BVBank, HDBank, LPBank, BAOVIET Bank...
