Businesses refrain from issuing bonds due to COVID-19 epidemic
admin 21-06-2020, 17:16

The volume of corporate bonds issued during February has reduced remarkably compared to the previous month due to the negative impacts of the COVID 19 epidemic on the stock market

Businesses refrain from issuing bonds due to COVID-19 epidemic

Illustrative image (Photo: VNA)

According to a report released by SSI Securities Corporation on March 10, a total of 15 firms issued bonds in February worth a total VND5.574 trillion (around US$240 million). Real estate companies accounted for 72% of the bond value.

The number is only equal to 41% of the value of bonds issued in January.

For the two-month period, a total of VND19.4 trillion worth of corporate bonds were issued with an average maturity of 4.75 years and interest rate of 10.07% per annum.

Real estate firms made up 60% of the total volume or nearly VND11.64 trillion.

Only two banks issued bonds during January-February, which are the Asia Commercial Bank (ACB) with VND230 billion worth of 10-year bonds, and the Tien Phong Commercial Bank (TPBank) with VND552 billion worth of 7-year bonds.

The stock market had a difficult time in February with the benchmark VN-Index on the Ho Chi Minh City Stock Exchange (HoSE) ending the month plummeting 5.81% to 882.19 points. The VN-Allshare and VN30 Indexes also dropped 2.97% and 1.96%, respectively, from January.

Source: VNA