Vietnamese real estate firms issue no bonds in April

HANOI: The tightening of capital flows into the real estate sector has caused businesses to halt the issuance of bonds in April, according to data issued by the Vietnam Bond Market Association (VBMA).

VBMA said that by the end of April 29, the market had 23 private placement tranches of bonds with a value of 16.47 trillion dong (Us$717.9mil or Rm3.13bil) in the month.

The majority of businesses issuing bonds in April were commercial banks with a value of 14.94 trillion dong (Rm2.84bil), accounting for 90.7% of the total issued value.

In this group, Mbbank was the biggest issuing bank with 4.6 trillion dong (Rm876.33mil) of three-year bonds and Sacombank was behind with 2.5 trillion dong (Rm475.98mil) of three-year bonds.

The energy, transportation, manufacturing and financial groups also participated in private placement in the past month, but the volume only accounted for less than 10% of the total issued value.

Notably, according to statistics from VBMA, in April, there were no bond issuances by real estate companies. This was contrast to March when real estate companies were still leading with 46.7% of the total value of bonds issued in the month.

Since 2019, real estate businesses have been regularly in the group of businesses with the highest value of corporate bonds issued monthly, quarterly and annually.

However, since the beginning of the year, after the tightening policy of capital inflows into this sector, the value of real estate corporate bonds has dropped sharply.

At the end of 2021 and the beginning of 2022, the Securities Commission has given sanctions in the field of corporate bonds against three enterprises – Vsetgroup and Apec Group and VIS Securities Co. — Viet Nam NEWS/ANN