No real estate companies issued bonds in April
According to the report of the Vietnam Bond Market Association (VMBA), in April 2022, there was no public bond issuance and there were 23 individual corporate bond issuances with a total issuance value 16,472 billion dong.
The majority of issuers in April came from commercial banks with VND 14,940 billion, accounting for 90.7% of the total issuance value. In this group, Military Commercial Joint Stock Bank issued the most with 4,600 billion dong of 3-year bonds and Saigon Thuong Tin Commercial Joint Stock Bank was behind at 2,500 billion dong, bonds also had 3-year terms.
In addition, businesses in the energy, transportation, manufacturing and financial groups also issued individual bonds during the month, but the volume accounted for less than 10% of the total issued value.
Thus, in April 2022, no real estate enterprises issued corporate bonds.
No real estate companies issued corporate bonds in April 2022.
Real estate is leading in terms of issuance value with a total volume of VND 28.856 billion, accounting for 37.35%. Term from 1 to 3 years accounted for the majority of the issuance value in this group with VND 21,559 billion, equivalent to 74.71%. The banking group ranked second with VND 24,393 billion, accounting for 31.57% of the total issuance value. The Vietnam Bond Market Association also said that from the beginning of the year to the end of April 2022, there were 9 issuances. corporate bonds to the public with a value of VND 8,696 billion and 97 separate issuances with a total value of VND 68,566 billion.
Previously, according to the Vietnam Bond Market Association, in the first 3 months of 2022, large real estate bond issuance deals .
Notably, the deals attracted public opinion such as: Nhat Quang Real Estate Development Joint Stock Company issued bonds to mobilize VND 2,150 billion, Smart Dragon Investment Joint Stock Company issued bonds to mobilize VND 1,900 billion, and the Group. Ha Do Group issued bonds to mobilize VND 210 billion, Hoi An Investment Joint Stock Company issued bonds to mobilize VND 516 billion, Phat Dat Real Estate Development Joint Stock Company issued bonds to mobilize VND 400 billion…
Real estate enterprises issue bonds 40 times larger than capital
The Ministry of Construction said that with such a large number of bond issuances and paying high interest rates, there are many potential risks for the market.
Notably, many real estate businesses issue bonds many times larger than equity, in some cases 40 times equity, posing a risk to the market. The bond issuance term is short, about 3-5 years, but it mobilizes capital to implement projects lasting more than 5 years, so the risk to investors is not small.
In addition, the collateral for corporate bonds is usually a real estate project, but the valuation of the collateral is not close to reality, higher than the actual value, causing many risks for investors to buy. real estate bonds.
at Blogtuan.info – Source: cafebiz.vn – Read the original article here
