VIETNAM BOND MARKET REPORT

Transcription

1 VIETNAM BOND MARKET ASSOCIATION VIETNAM BOND MARKET REPORT In, there were 5 government bond auctions in the primary market which helped the State Treasury raise VN7,588 billion out of the VND14,400 billion offered. The offering/winning ratio was 52.7%, much lower than the 96.5% rate last month. In the corporate bond market, BacABank and CII issued VND500 billion and USD40 million corporate bond, respectively. FCN, VDS and Sacomreal all had plan to issue corporate bond in the near future. Total outright bond trading volume in November was VND179,539 billion, 54.73% higher than in October. The average daily trading volume this month was VND8,161 billion. As of the end of October 2016, total outstanding value of Government bond, Governmentguaranteed bond and municipal bond is VND924,621 billion. The market share of Government bonds in total bond outstanding value was 82.08% or VND758,937billion, came next was Government-guaranteed bond with 15.60% or VND144,284 billion and the remaining 2.31% is municipal bond. Data from the VBMA Market Makers Chatroom indicated that Government bond yield fixing at the end of November increased markedly across all compared to October. Specifically: bps with 1-year bond, bps in 2-year bond, bps in 3-year bond, bps in 5-year bond, bps in 7-year bond and +7.7 bps in 10-year bond.

2 PRIMARY MARKET The State Treasury raised VND7,588 billion via bond auctions. The winning/offering plummeted to 52.7% from 96.5% last month. In, there were 5 government bond auctions in the primary market which helped the State Treasury raise VN7,588 billion out of the VND14,400 billion offered. The offering/winning ratio plummeted to 52.7% from the 96.5% rate last month. Table 1: Government bond auction results in : No. Date of bidding Bond code Tenors (years) Offering volume Winning volume 1 30-Nov-2016 TD ,000 0 Winning interest rate (%) Up/Down compared to the previous auction 2 30-Nov-2016 TD ,900 3, Nov-2016 TD ,000 1, Nov-2016 TD Nov-2016 TD , Nov-2016 TD , Nov-2016 TD , Nov-2016 TD , Nov-2016 TD , Nov-2016 TD ,000 1, Nov-2016 TD , Nov-2016 BVBS Nov-2016 BVBS Nov-2016 BVBS Nov-2016 BVBS Nov-2016 BVBS Nov-2016 BVBS Nov-2016 BVBS Nov-2016 BVDB Nov-2016 BVDB , Nov-2016 BVDB Nov-2016 BVDB , Nov-2016 BVDB , Nov-2016 BVDB , V i e t n a m B o n d M a r k e t A s s o c i a t i o n Page 2

3 Figure 1: Offering and winning volume of Government bond in the last 13 months. 65, % 55,000 45, % 98.4% 96.6% 94.6% 96.5% 84.0% 86.7% 82.2% 81.7% 70.7% 71.9% 90.0% 70.0% 35,000 25,000 15,000 5, % 52.7% 50.0% 30.0% 10.0% (5,000) Nov Dec Jan Feb March April May June July August Sept Oct Nov Winning volume Offering volume Winning/Offering ratio -10.0% Table 2: Bond auctions result in, classified by tenors. No. Tenors Offering amount Winning amount Winning/Offering ratio 1 5 Years 5,900 4, % 2 7 Years 2, % 3 10 Years 2, % 4 15 Years 2,000 1, % 5 20 Years 1, % 6 30 Years 1,500 1, % Total 14,400 7, % In the first 11 months of 2016, the State Treasury raised VND277,794 billion from Government bond auction at HNX, accomplishing 98.86% of the second adjusted issuance plan (VND281,000 billion) for this year. V i e t n a m B o n d M a r k e t A s s o c i a t i o n Page 3

4 Government bond having payment date in December 2016 Table 3: Government bond payment in December 2016 NO. BOND CODE TENOR (years) DATE OF ISSUE DATE OF MATURITY TOTAL ISSUING VALUE (VND BIO) COUPON RATE (%/YEAR) 1 TD Dec Dec , TD Dec Dec , TD Dec Dec , TD Dec Dec , TD Dec Dec , TD Dec Dec , Corporate Bond BacABank issued VND500 billion corporate bond Source: VBMA On the 24 th of Novmber 2016, BacABank offered VND2,000 billion corporate bond but successfully sold only VND500 billion. FCN planned to issue VND200 billion coporate bond. FECON Jsc. Planned to isued VND200 billion 5-year secured corporate bond in 2 phases: phase 1 with VND70 billion and phase 2 the remaining VND130 billion. VDS planned to issue VND300 billion corporate bond Rong Viet Securities Companies planned to issued VND300 billiion unsecured corporate bond. The bond will be issued via private placement in multiple phases within 12 months. SCR planned to issue VND300 billion corporate bond Sacomreal planned to issue VND200 billion 2-year corporate bond. The bond will have fixed coupon rate of 12%/year, be inconvertible and secured by assets. CII issued USD40 million corporate bond On the 24th of, Ho Chi Minh City Infrastructure Investment Joint Stock Company issued USD40 million corporate bond at par, with 5-year tenor and fixed coupon rate 1%/year. V i e t n a m B o n d M a r k e t A s s o c i a t i o n Page 4

5 SECONDARY MARKET The total trading volume in November was VND179,539 billion VIETNAM BOND MARKET REPORT Total outright bond trading volume in November was VND179,539 billion, 54.73% higher than in October. The average daily trading volume this month was VND8,161 billion. Table 4: Outright trading volume in Bond type Outright Repo Trading Value Mkt share Trading Value Mkt share Total Municipal bond % 0 0.0% 195 Governemnt Bond 112, % 41, % 153,288 Gov Guaranteed Bond 19, % 6, % 26,055 Total 131, % 47, % 179,539 Figure 2: Trading value in the last 13 months 140, , ,000 80,000 60,000 40,000 20, ,040 74,122 82,280 82,643 46,849 43,836 51,621 45,579 33, , , ,288 90,800 Nov Dec Jan Feb March April May June July August Sept Oct Nov Table 5: Bonds with largest volume of outright trading in. No. Bond Code Issuance date Initial tenors (Years) Trading value (VND billion) 1 TD Nov Years 3,877 2 TD Jun Years 3,138 3 TD Aug Years 3,017 4 TD Jan Years 2,866 5 TD Nov Years 2,755 6 TD Feb Years 2,649 Total 18,301 The total trading value of the above 6 bonds alone accounted for 15.8% of all outright Government bond trading in November. V i e t n a m B o n d M a r k e t A s s o c i a t i o n Page 5

6 Government bonds account for the large majority of total bond outstanding. VIETNAM BOND MARKET REPORT As of the end of October 2016, total outstanding value of Government bond, Government-guaranteed bond and municipal bond is VND924,621 billion. The market share of Government bonds in total bond outstanding value was 82.08% or VND758,937billion, came next was Government-guaranteed bond with 15.60% or VND144,284 billion and the remaining 2.31% is municipal bond. Figure 3: Outstanding bond value market share at the end of : 15.60% 2.31% 82.08% Government bond Gov'-guaranteed bond Municipal bond Movements of VBMA s Government Bond Yield Fixing in Data from the VBMA Market Makers Chatroom indicated that Government bond yield fixing at the end of November increased markedly across all compared to October. Specifically: bps with 1-year bond, bps in 2-year bond, bps in 3-year bond, bps in 5-year bond, bps in 7-year bond and +7.7 bps in 10-year bond. Figure 4: VBMA Gov Bond Yield Fixing Curve at the end of September, October and December % 6.50% 6.00% 5.50% 5.00% 4.50% 4.00% September October November 3.50% 3.00% 1y 2y 3y 5y 7y 10y Source: VBMA V i e t n a m B o n d M a r k e t A s s o c i a t i o n Page 6

7 Government bond yield Fixings across all tenor at the end of November have decreased bps, year-to-date. Figure 5: Movement of VBMA Gov Bond yield fixing in the first 11 months of % 7.00% 6.50% 6.00% 5.50% 5.00% 4.50% 4.00% 3.50% 1y 2y 3y 5y 7y 10y 3.00% Source: VBMA Thank you for reading VBMA s Monthly Bond Market Report. For more information, please contact: VIETNAM BOND MARKET ASSOCIATION 14th Floor, Tower A Vincom, 19 Ba Trieu Str.,Hai Ba Trung Distr., Ha Noi Tel: (84) Fax: (84) Website: Disclaimer: The information and opinions in this report are those of Vietnam Bond Market Association (VBMA) research activity. VBMA does not make any representation or warranty, express or implied, as to the fairness, accuracy, or completeness. While all reasonable care has no representation as to its accuracy or completeness and it should not be relied upon as such. VBMA accepts no liability whatsoever for any loss arising from use of this report or its contents. This report is being supplied solely for informational purposes and may not be reproduced, distributed or published by recipient for any purpose. V i e t n a m B o n d M a r k e t A s s o c i a t i o n Page 7