ANTD.VN - Along with the move to buy back bonds before maturity, many banks have also promoted new issuances in recent months.
According to statistics, in August 2023, there were 20 corporate bond issuances with a total issuance value of more than VND 22,000 billion, a sharp increase compared to July (up more than 70%). The surge in bond issuance volume was mainly due to banks aggressively reissuing bonds.
Specifically, in the month, there were 10 bond issuances by banks with a value of more than 12,000 billion VND, accounting for 56%. Of which,ACB Bank had 3 issuances with a total value of 6,500 billion VND, MSB issued 1,000 billion VND, OCB 2,000 billion VND, BacABank 800 billion VND, BIDV 700 billion VND...
In addition, HDBank's Board of Directors has just approved a plan to issue to the public a maximum of VND5,000 billion in non-convertible bonds, without warrants, without collateral, with a term of 7 years. The bonds are issued to supplement Tier 2 capital, improve capital safety ratios and serve customers' borrowing needs.
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Banks have stepped up bond issuance in recent months. |
Thus, it can be seen that banks have actively promoted bond issuance in the past 2 months after a period of almost "freezing" during the first half of this year.
The reason for the resurgence of bank bonds may be due to the removal of audit issues. Previously, in the first half of this year, many auditing units refused to confirm the bond usage of banks, causing a deadlock in new issuance.
Specifically, according to the provisions of Decree 65/2022/ND-CP, all privately issued enterprises must periodically disclose information every 6 months and annually on the situation of using outstanding bond capital controlled by a qualified auditing organization.
However, according to banks, in reality, the amount of money that banks mobilize from bonds with other sources (residential deposits, deposit certificates, etc.) is merged into one, so it will be difficult for auditors to determine which specific investment is used for the bond issuance money.
However, this difficulty has now been resolved, and some banks have had their capital usage reports confirmed by the auditing unit.
On the other hand, some banks have also stepped up the purchase of bonds before maturity to restructure capital sources. In August alone, 6 banks carried out 10 early bond buybacks, with a total value of more than 6,600 billion VND, according to the announcement of HNX (as of August 30).
The trend of banks buying back bonds before maturity has been going on continuously for many months. Since the beginning of the year, banks have bought back over 80,000 billion VND worth of bonds before maturity.
The reason why banks are racing to buy back bonds before maturity is because they have excess liquidity when they cannot boost credit growth. Meanwhile, previously issued bonds often have high interest rates, so buying back bonds before maturity is also a way for banks to restructure bond terms and interest rates, reduce capital surplus, improve capital efficiency, and improve capital adequacy ratio (CAR).
It is not excluded that banks will buy back bonds with a term of less than 5 years to create room to issue new bonds with a term of more than 5 years (eligible for Tier 2 capital). This is also reasonable in the context that from October 1, 2023, the short-term capital ratio for medium and long-term loans will be reduced from 34% to 30%.
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