FiinRatings Monthly Report - March 2023: Corporate bond issuance improves but difficulties still lie ahead

In March, the corporate bond market witnessed a reversal in issuance activity, with a total of 13 bond issuances amounting to nearly VND 27 trillion. Notably, real estate developers made a comeback with six privately placed bond issuances by five companies, totaling VND 23.7 trillion

 

In March, the corporate bond market witnessed a reversal in issuance activity, with a total of 13 bond issuances amounting to nearly VND 27 trillion. Notably, real estate developers made a comeback with six privately placed bond issuances by five companies, totaling VND 23.7 trillion.

Early redemption activity continued to increase, but March was the first month since the issuance of Decree 65/2022/ND-CP that the outstanding value in the corporate bond market has reversed to increase. We believe that recent initiatives to reduce interest rates, such as Decree 08/2023/ND-CP, Resolution 33/NQ-CP on removing obstacles and promoting the real estate market, and most recently the establishment of task forces to resolve issues with Novaland and DIC Corp's projects, have had a positive impact on the overall market, especially the real estate industry. These actions are also a prerequisite for the recovery of the corporate bond market, as legal risks have been the biggest concern in the credit market.

You can refer to our FULL Monthly Report – March 2023 HERE.

About FiinRatings

FiinRatings Joint Stock Company, a member of FiinGroup and a technical collaboration partner with S&P Global Ratings, is a licensed Credit Rating Agency in Vietnam. FiinRatings provides credit ratings and related services to issuers, creditors, and investors in the Vietnamese credit market. Moreover, FiinRatings is Vietnam's first green bond verifier approved in accordance with international standards set by the Climate Bonds Initiative. For further details, please visit https://www.fiinratings.vn.

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