Sep: Commercial Bank issued most primary corporate bonds

Sep: Commercial Bank issued most primary corporate bonds

According to the report on the financial market of Vietnam in March 09/2019 has just released on 07/10, SSI (HM: SSI) Research states that the primary TPDN market in Sept. 9 is mainly of commercial banks.

A low-level return on the PCP's income, but on the secondary

In the 9th month, KBNN called for 2 sessions with the winning volume of only 5.950 billion, which is the monthly call to bid at least since 10/2018 back here. In general, 9 months 2019, KBNN released nearly 154 trillion VND, only equivalent to 59.2% of the Year plan in which your own release Volume 3 is 48.879 billion VND. Total public investment Capital May 9, 2019 estimated at VND 192 trillion, by 45.17% of the National Assembly plan and lower than the same period 2018. Large projects are located in capital use plans such as North-South Expressway, Long Thanh International Airport... Are slow to deploy, KBNN also restricts new releases.

The supply dropped sharply in the last two months while the demand remained high, the registration volume is always about 4-5 times the amount of bids, which has caused the winning interest to continue to decline from 12-22bps at all maturity in the 9th month. Current interest rate winning bids on 5, 7, 10, 15, 20, 30 in turn is 3.15%, 3.54%, 3.97%, 4.24%, 4.9% and 5.23% per year-reducing the turn is 67bps, 81bos, 113bps, 106bps, 70bps and 57 bps compared to the beginning of the year 2019.

Receiving information reduction of SBV's operating interest rates, the return on secondary TPCP continued to decline quite sharply in the first half of January, but later on and slightly increased by the end of the month. The income from the beginning of the year has been reduced by 1.3-1.5% per year for 5 years or less and 1% reduction per year for more than 5 years, the bond price has increased drastically compared to the beginning of the year, the parties increase the profit, making the profits so the income increases.

In the month, foreign trade volume was interwoven with 2 weeks net buy and 2 weeks sales net but the aggregate still buys net 2.240 billion in that more than 1.700 billion net purchases at the 25-30 year term. Notably, during the trading week last 9 months, foreign investors have bought net 3.011 billion VND-the record level by week from 2013 to present. Since the beginning of the year, the investor has bought net all months, the total amount of net accumulated is 15.2 trillion VND in the secondary market.

The primary market of TPDN in 9 months is mainly of commercial banks

In the month 9/2019 there were 25.516 billion in the new issued corporate bonds of which up to 21.071 billion VND (equivalent to 82.6%) Bonds issued by the NHTM. The most-released banks in the 9th month are TCB (HM: TCB), CTG, BID, ACB (HN: ACB), OCB...

In the first 9 months of the year 2019, the total amount of TPDN issued is VND 155.306 billion (the metric does not include individual releases in the first 3 months due to HNX not published) where the NHTM remains the largest release organization with total release volume 75.936 billion VND (49%), behind the real estate business (47.372 billion VND-accounted for 26.4%), the rest are the infrastructure development companies, securities companies and other enterprises.

Calculating the market-wide TPDN for 9 months 2019, the average interest rate is 8.4% per year and the average term is 3.68 years where the rate and average term of the bank Group is 6.82%/year and 3.82 years; Of the real Estate Group is 10.17% per year and 3.42 years.

9 months is the month of the most release of the NHTM calculation from the beginning of year to date. The average release rate of the bank bond in Aug. 8 and 9 months was 7.1% and 7.0%-higher than the previous months mainly issued by the bank for longer term bonds. Instead of just releasing bonds 2-3 years as the previous month, during the month of Aug and 9/2019, the NHTM boosted the term bond release of 5 years, 7 years and 10 years. The most long term bond release banks are Vietinbank (HM: CTG), BIDV (HM: BID), Seabank.

On the contrary, the average interest rate in the 9th month of the real estate bond dropped sharply to 8.1% however the monthly release is only VND 1.797 billion of 4 release organizations namely Phu my hung development CO., Nova Tan Gia Phat, Gia Khanh Management and development JSC and Sunshine Marina Nha Trang JSC. Except for the 460 billion of Gia Khanh bonds with a floating interest rate with the first semester of 10.5% per year, the remaining bonds have a fairly low interest rate, especially the two lots of Nova tan Gia Phat interest rate only 6% per year and are used by individuals in the whole country. Only about 62% of the offer is purchased, most of the batches released are abundant in that the excess is the most of Phu my hung when only issued 800 billion on a total of 1.700 billion for sale, the buyer of 100% are foreign investors.

South East