FiinRatings - Corporate Bonds Bulletin - July 2022
As a licensed Credit Rating Agency in Vietnam, FiinRatings provides market participants with standardized information and in-depth analysis to contribute to the sustainable development of Vietnam's capital market. FiinRatings is pleased to present the Corporate Bonds Bulletin – July 2022 covers comprehensive insights into the Vietnam corporate bond market in July.
In July, the scale of bond issuance decreased sharply, with the issuance value of only nearly 22 trillion VND, down 65% YoY and 48.23% MoM respectively. Despite the modest issuance value, FiinGroup's data shows that 58 listed real estate companies have maintained loan balance growth (including bank credits and bonds) at 25.1% for the first six months of 2022. The statistic shows businesses can still access bank loan capital even though the bond channel has been quiet.
Issuing activities of Credit Institutions continued to lead the market with a total of 21 issuances, reaching a scale of VND 19.49 trillion, accounting for 89% of the primary market. Although the market share of bank bonds has grown significantly, the issuance value has decreased by nearly 63.5% compared to the previous month.
The corporate bond market in July 2022 recorded the first batch of Green Bonds issued in Vietnam by EVNFinance; the proceeds are expected to be used to finance projects that meet the conditions stated in the Green Bond Framework of the company, based on the Green Bond Principles of the International Capital Markets Association (ICMA). We consider this a significant boost to the Green Bond market, which is relatively new and modest, and the sustainable future of the renewable energy industry. EVNFinance's leadership in mobilizing green bonds will encourage businesses to consider this capital channel more, ensuring the necessary capital to implement projects towards Vietnam's commitment at the Summit on Transformation United Nations climate for 2021 (COP26).
You can refer to the bulletin for details HERE.
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