Banking & Finance

A record-breaking syndicated financing for one of Vietnam’s best performers makes a statement about investor sentiment towards both bank and country

Data from FiinGroup shows that more than VND30.5 trillion ($1.3 billion) in corporate bonds were issued in the domestic market during June. The banking group alone had VND25.5 trillion ($1.08 billion) issued in the month, accounting for the largest share.

According to KBSV, the value of corporate bonds from real estate companies maturing in 2022 is VND123.4 trillion ($5.28 billion), of which unlisted real estate enterprises account for 84.5 per cent and listed groups 15.5 per cent. KBSV believes the large-scale listed real estate group is fully capable of making payments when bonds mature.

According to the SSI Securities Company, outstanding loans for Covid-19 restructuring are falling and large banks have made adequate provisions for such debts. Therefore, debt restructuring due to Covid-19 is not overly concerning, but risks to the banking sector may actually come from loans relating to real estate and corporate bonds.

Recent withdrawals by the State Bank of Vietnam (SBV) have been unprecedented. In just a short period of time, on the open market channel alone, the SBV has net withdrawn more than VND160 trillion ($6.85 billion). However, the VND interbank interest rate still fell sharply because credit growth slowed, making system liquidity redundant.

According to the State Bank of Vietnam (SBV), credit in the economy as a whole in the last ten days of June increased 0.84 per cent, or nearly VND70 trillion ($2.98 billion). Credit growth in the first half of the year therefore stood at 9.35 per cent.