Bond market still gloomy – FiinRatings

HCMC – Following a surge in corporate bond issues in March, the bond market has returned to its lackluster state with merely one issue done in April, according to credit rating agency FiinRatings.

North Star Holdings JSC on April 14 issued bonds worth VND671 billion, a mere 2.5% of the total recorded in March.

The bond comes with a term of 16 months and a coupon rate of 14% per year, the highest since January.

Bond buybacks in the month amounted to around VND11.3 trillion, slumping 41.6% versus March and 10% against last April.

The central bank’s Circular 03, which enables banks to buy back corporate bonds issued by unlisted companies within 12 months after they were issued, has helped improve investor sentiment, reduce the proportion of individual investors and stabilize the market, the credit rating agency said.

Last month, most of the buybacks were conducted by banks, accounting for 61% of the total value. Banks’ early redemption of bonds in April surged by 5.6-fold over March and 2.4-fold compared to the same period in 2022.

Meanwhile, 98 issuers were late in settling bond coupon and principal, with a total value of VND128.5 trillion as of May 4, up 13.6% compared to the last update.

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