Real estate bonds plummeted by more than half, with only one firm issuing bonds for the whole month

DNHN - This month, the group of real estate firms recorded Fuji Nutri Food Joint Stock Company as the only representative to participate in the issue of bonds worth VND 1,000 billion.

According to the Hanoi Stock Exchange (HNX), the whole market saw 17 bond issuances totalling VND 9,040 billion in August. In commercial banks issued the bulk of newly issued bonds this month, totalling VND6,740 billion, accounting for 75% of the total issuance volume.

Furthermore, the second-ranked category of finance - securities businesses issued 1,300 billion dongs, accounting for 14% of the volume in the month.

Notably, the group of real estate enterprises said this month that the only representative, Fuji Nutri Food Joint Stock Company, participated in the issuing of bonds worth VND 1,000 billion. Only one real estate business issued bonds last month, Ha An Real Estate Business Investment Joint Stock Company, for VND 210 billion.

Businesses have issued more than 209,000 billion dongs of bonds to the market since the beginning of the year, a decrease of over one-third compared to the issuance volume in the first eight months of 2021.

The amount of real estate corporate bonds issued over the same time was only 45,881 billion dongs, 58% smaller than the previous period, resulting in a net loss of more than 62,000 billion dongs.

According to the State Securities Commission, the fast expansion of the individual corporate bond market poses dangers, necessitating revisions and additions to existing restrictions, as well as higher fines, to keep this market healthy and promote development in the proper direction.

Before the hazards of this market, the Minister of Finance issued several harsh orders, as well as regular warning messages to issuers, intermediary service providers, and, most importantly, investors.

The retail corporate bond market is highly dependent on the initiative and compliance of market participants: firm issuers, intermediary service providers, and investors, in addition to legislative rules, management, and oversight by State authorities.

To reduce dangers for investors while investing in and trading privately issued bonds, the legislation expressly states that only professional securities investors may engage in buying privately issued odd.

PV