The corporate bond market in 2024 has recorded a notable highlight from the banking group, with a continuous surge in the volume of issuance exceeding that of other industries. According to this, 67% of the total value of corporate bonds issued in the first seven months of this year belongs to banks, equivalent to a value of nearly 123,000 billion Vietnamese dong.
In addition to the overwhelming volume of issuance, corporate bonds issued by banks are considered safer than other industries, with a stable long-term interest rate of 5 - 6% over 3 - 5 years. At the same time, corporate bonds issued by banks also attract long-term investment due to higher liquidity compared to bonds issued by other industries.
Notably, some banks have issued bonds with attractive interest rates, close to 7-8%/year. For example, the Ho Chi Minh City Development Commercial Joint Stock Bank (HDBANK) has issued 10 bond lots since the beginning of the year, with most of them having interest rates of 7.47%/year and 7.8%/year, with a term of 7-8 years.
Recently, the Vietnam Joint Stock Commercial Bank (BVBank) has offered a public bond issue (lot 1) with a fixed interest rate of 7.9%/year. From the second year onwards, the interest rate will be based on the average interest rate of 12 months of individual savings at four banks (Vietcombank, Vietinbank, BIDV, and Agribank) immediately before the annual interest rate adjustment.
The Nam A Bank has also issued four public bond issues since the beginning of the year, with a total value of 4,800 billion Vietnamese dong. Among them, two bond lots have an interest rate of 7.7%/year.
The Bao Viet Bank has also successfully issued a bond worth 1,000 billion Vietnamese dong with an interest rate of 7.68%/year.
These are the banks with interest rates that are significantly higher than the current average interest rate of corporate bonds issued by banks.
In addition, a series of banks have issued bonds with interest rates exceeding 6%/year, including the Asia Commercial Joint Stock Bank (ACB), the Vietnam Trade Commercial Joint Stock Bank (VietinBank), the Saigon - Hanoi Commercial Joint Stock Bank (SHB), the Vietnam Development Commercial Joint Stock Bank (BIDV), the Tiên Phong Commercial Joint Stock Bank (TPBank), and others.
