The private corporate bond market has grown strongly after 1 year of operation.

The market size is growing strongly.

On July 19, 2023, the TPDNRL trading system was officially put into operation at HNX. At the time of opening, the market had 19 TPDNRL codes of 3 issuers registered for trading with a total registered trading value of VND 9,060 billion.

By the end of 2023, the individual corporate bond trading system had 887 bond codes of 249 issuers registered for trading with a value of VND 617,610.1 billion.

By June 30, 2024, the market size had reached 997 TPDNRL codes of 259 issuers, with a registered trading value of nearly VND 706,236.3 billion.

The TPDNRL trading member system also developed rapidly from 5 members at the market opening day, by the end of 2023, the market had 36 trading members, and by June 30, 2024, the TPDNRL trading member system had 48 members including 44 securities companies and 4 commercial banks. Of which, 45/48 members traded on the HNX trading system.

TPDNRL liquidity has improved significantly, the average transaction value in the first month of market opening reached 250.6 billion VND/session, by the end of 2023 it was 1,880.6 billion VND/session, and by the end of June 2024, the average TPDNRL transaction value reached 4,092.9 billion VND/session.

TPDNRL transaction statistics from the time the trading system came into operation to June 30, 2024 show that the most traded bonds include bonds of credit institutions, accounting for 45.71% of the total market transaction value, equivalent to a transaction value of VND 324,246 billion; bonds of real estate companies account for approximately 30% of the market transaction value, equivalent to a transaction value of VND 212,577 billion.

The development of the secondary market also creates favorable conditions for businesses to mobilize capital in the primary market, contributing to promoting the primary market of TPDNRL to develop more healthily and sustainably.

In the domestic market, from July 19, 2023 to June 30, 2024, there were 118 successful issuances with a value of VND 351,739 billion. The issuing organizations mainly belonged to the credit sector, accounting for 63% and enterprises in the real estate sector accounted for 24.9% of the total issuance value of the whole market. The average cost of capital mobilization in the whole market reached 7.52%/year, in which, bonds of credit institutions had the lowest interest rate of 6.01%/year, the trade and service sector was 10.76%, enterprises in other sectors were 10.87%.

Issuers also carried out early buybacks, with the total value of bonds bought back by businesses being VND182.9 trillion.

Important results achieved

The TPDNRL market has played a very important role in bringing transparency to the market, limiting risks for investors in transactions, especially individual investors.

Investors trade TPDNRL conveniently and safely: All secondary transactions are centrally managed and carried out through the Stock Exchange, and payment activities are carried out through the Securities Depository Center, ensuring safety in transactions and payments. Therefore, investors trade TPDNRL more conveniently and safely, and their interests are better protected.

Investors also have improved understanding and increased responsibility in transactions. Other market participants such as issuers and consultants also have a better understanding of their responsibilities when participating in the market.

Transparent market information, a complete database of TPDNRL is formed: If in the past, secondary investors could only access information through the distribution system, sales brokers, and often the information was not fully transmitted, now, with the corporate bond information page, investors have the full right and ability to access all information about bonds fully before making an investment decision.

All information disclosed by bond-issuing enterprises, including information before the issuance of enterprises, unusual information disclosure, information disclosure of enterprises on convertible bonds, bonds with warrants, early bond redemption, bond swaps, corporate bond issuance results, etc., are compiled and publicly disclosed on the TPDNRL information page at https://cbonds.hnx.vn/.

Regulatory agencies also have more complete information and a more comprehensive view of TPDNRL from issuance in the primary market to trading in the secondary market.

The results achieved in the past year in the TPDNRL market have realized the policy of the Government and management agencies in determining to put TPDNRL issuance and trading activities under centralized management.

To continue developing the market in line with the direction of the Government and the Ministry of Finance , in the coming time, HNX will coordinate with relevant units to continue improving the technology infrastructure of the trading system, increasingly better meeting market requirements; at the same time, complete upgrading the specialized information page on corporate bonds to meet Decree 65/2022/ND-CP and Circular 30/2023/TT-BTC.

The corporate bond market is assessed to have a very important role and position in the economy , being an effective capital mobilization channel in the medium and long term for the sustainable development of enterprises; at the same time, contributing to diversifying the financial market, ensuring harmony and balance in the capital market structure, reducing excessive dependence on bank credit channels.

Source: https://nhandan.vn/thi-truong-trai-phieu-doanh-nghiep-rieng-le-lon-manh-sau-1-nam-van-hanh-post821889.html