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Aug 23, 2023 / 22:27

More than US$240 million transacted one month after corporate bond platform launched

The platform's operation significantly contributes to the corporate bond market, progressively increasing transparency and mitigating transaction risks.

One month after the launch of the corporate bond trading platform, investors have transferred a total of VND5.76 trillion (US$240 million), according to figures from the Hanoi Stock Exchange (HNX).

The corporate bond trading platform helps boost the local corporate bond market. Photo: The Hanoi Times

"One month into its operation, the corporate bond trading platform has demonstrated secure and seamless operation with no technical issues. As a result, the scale of the market is expanding and bond liquidity is being effectively maintained," HNX said.

When the platform was launched, 19 registered tickers were available for trading. Additional tickers have since been added, bringing the total number of tradable bond tickers on the platform to 31.

These bonds are categorized into five units, represented by entities, including the Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV), the Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank), and VinFast Production and Trading Joint Stock Company. In particular, Vietcombank has the largest registered trading volume of VND7.24 trillion ($304 million) across 15 bond tickers.

As for liquidity, the total bond trading volume of the entire market as of August 18 was over 23.3 million bonds with a trading value of about VND5.765 billion ($240 million).

On average, one million bonds changed hands per trading session, with a trading value of VND250.6 billion ($10.5 million) per session.

Vietcombank bonds had the highest trading value at over VND3.4 trillion ($142.7 million), followed by BIDV bonds at over VND1.83 trillion ($77 million).

The market is exclusively occupied by domestic investors, who account for all transactions.

The HNX noted that the corporate bond trading system includes eight member securities companies, with another 15 member securities companies and one commercial bank in the final stage of completing the participation procedures.

"The platform's operation will make significant contributions to the corporate bond market, gradually enhancing transparency and mitigating transaction risks. It aims to curb instances of excessive offerings that violate regulations," the HNX said.

It added that this effort is aimed at strengthening liquidity while providing the primary market with informative benchmarks to stimulate development, facilitating capital raising for issuers.

According to data from the corporate bond information portal, there were 16 independent corporate bond issuances in June, with a total issuance value of VND7.6 trillion ($319 million). The following month, the number of issuances doubled, reaching a value of VND28.7 trillion ($1.2 billion).

For the whole of August, there were 18 issuances, with a slight decrease in the number of issuances compared to the previous month; however, the issuance value jumped to nearly VND29.8 trillion ($1.25 billion).