According to the announcement from Hanoi Stock Exchange (HNX), Hong Hoang Investment and Trading Company has just completed the issuance of over 14 million bonds , face value of 100,000 dong and mobilized more than 1,400 billion dong.
This type of bonds is non-convertible, guaranteed assets, 5-year tenor, with interest rates up to 20% per annum. The entire batch of bonds is sold to foreign institutional investors. The advisory organization and depository unit are ACB Securities Company (ACBS).
This is a new record of corporate bond issuance interest rates in the past, even surpassing other bond issuance deals, typically the figure of 14.5% has caused a stir in the company’s market. Phat Dat real estate.
The Hanoi Stock Exchange also said that in October, businesses raised nearly 17,000 billion dong from bond issuance activities, continuing to record the bustle of the market even though the issuance volume has decreased. compared to September.
In total, there were 132 times of registration of issuing corporate bonds but the actual number of issued bonds was 120 with 34 enterprises. In the first 10 months of the year, there are 176 businesses issuing 617 times, earning 202,215 billion dong.
The average interest rate of corporate bond issuance in October was only 10.69% (including the issuance of Hong Hoang Company), the popular 5-year term deposit interest rate is only from 9, 5 to 10.95%.
A change in bond issuance is that many issuers are not commercial banks like before, but real estate companies with 9,349 billion dong of bonds are issued, accounting for 55% of the total tissue released.
Accordingly, the issue of Vinametric Co., Ltd. - the owner of Saigon Prince Hotel, was issued with a total value of VND 3,705 billion for 2-year term and floating interest rate (for the first period of 10.5% / year, the following periods are equal to the reference interest rate plus the amplitude of 3.65% / year).
Next is San Vina Vina Real Estate JSC (Land Saigon) issued VND 1,850 billion of 3-year bonds, fixed interest rate of 11% / year.
In addition, there are other businesses such as TNR Holdings, Kien Trung Investment and Construction, Truong Thinh, Son Kim, Phuc Loc, Thuan Phat Real Estate, Nova Song Giang ...
Meanwhile, the group of commercial banks only issued 2.781 billion VND of bonds, of which 1,000 billion VND was issued in the form of a public offering of VietinBank, the rest were individual issuance lots of ABBank. , SeABank, SHB, BacA Bank, HDBank, MB.
In fact, there have been many risk warnings for bondholders in general and individual investors in particular since the corporate bond market exploded at the beginning of the year, not only the sector. Real estate but also spread to different industries.
However, risks are especially emphasized on real estate group because of the disparity in business characteristics, as well as unclear business results.
Issuers also face risks such as too high interest rate issuance while the return on capital use is not as expected. According to an expert’s calculation, if issuing bonds with common interest rate of 12-14.5% / year, the profit rate must reach over 20% - a rate not easy to achieve in the context of gloomy market. as it is today.
