How many corporate bonds does Vietcombank hold?
Sharing presentations at the Capital Market Development Conference taking place on the afternoon of April 22, Mr. Pham Quang Dung, Chairman Vietcombank Total assets of the bank have now exceeded 1.4 million billion dong, credit outstanding is more than 1 million billion dong. The corporate bond portfolio only accounts for a small proportion of Vietcombank’s credit portfolio
As of March 31, 2022, VCB’s corporate bond outstanding was at VND 11,400 billion (about 1% of total outstanding loans). Vietcombank’s corporate bond investment and transactions strictly comply with the provisions of the law, are managed with the same standards as lending activities (including the stages of control before, during and after the investment), in order to ensure Ensure control of cash flow and capital use purposes.
According to Mr. Dung, all outstanding corporate bonds of the bank are currently classified as Group 1 debt, the issuers are all doing business efficiently and paying on time.
Vietcombank considers that the development of the corporate bond market is a legitimate and inevitable requirement of businesses and the economy. This is a potential market with a lot of room for development. Therefore, the bank has always actively and actively participated in the corporate bond market with diverse roles such as professional investors, consulting organizations, underwriters, payment service providers, etc. … to contribute to promoting the development of the market and serving the long-term development strategy of Vietcombank.
In order to help the capital market in general and the corporate bond market in particular develop safely, transparently and effectively, contribute to stabilizing the macro-economy and ensure great balances of the economy, Vietcombank has 3 opinions as follows: after:
Firstly: Independent credit rating is an important infrastructure foundation to ensure the sustainable development of the capital market in general and the corporate bond market in particular.
Therefore, on the one hand, it is necessary to encourage the formation and development of credit rating companies. On the other hand, it is necessary to soon require compulsory independent credit rating for issuers and issued bonds.
International experience shows that the mandatory credit rating requirement for businesses and issued bonds is one of the key factors to help the market operate transparently and effectively. Credit ratings, on the one hand, help protect investors, on the other hand, help businesses have a healthy financial position, have good projects, and raise capital at low costs (the credit rating for enterprises is not limited to the credit rating of the company’s credit rating system). Issuance and issuance of corporate bonds are currently not compulsory according to the provisions of Decree No. 155/2020/ND-CP).
Second, the scale of privately issued corporate bonds has grown tremendously in recent years, reaching hundreds of thousands of billion dong per year and much larger than the scale of corporate bonds issued to the public.
While corporate bonds issued to the public are listed and traded centrally on the HNX, the vast majority of privately issued corporate bonds are deposited and traded in a distributed manner.
Therefore, it is advisable to consider forming a centralized trading market for privately issued corporate bonds soon. This will increase the transparency of the market, increase the supervisory capacity of the regulatory agencies, and provide better protection for investors. VCB would like to be registered to provide payment banking services for the centralized trading market of privately issued corporate bonds.
Third, the investor protection mechanism also needs to be continuously improved. In addition to strengthening training and communication for the public on investment knowledge from general to advanced, it is necessary to improve management and supervision mechanisms.
Post-audit and accompanying sanctions for issuers and organizations involved in the process of issuing and trading corporate bonds must be enough of a deterrent to ensure that the market operates openly, transparently, and with discipline. discipline, discipline.
at Blogtuan.info – Source: Soha.vn – Read the original article here
