VIETNAM BOND MARKET REPORT

Transcription

1 VIETNAM BOND MARKET ASSOCIATION On the 26th of, The State Treasury issued the Letter No. 701/KBNN- QLNQ on the Plan for bond issuance for According to the announcement, the total expected issuance amount for 2018 is VND200,000 billion. In, there were 6 bond auction sessions in the primary market which helped the raise VND10,015 billion out of the VND11,800 billion offered. In the corporate bond market, Saigon Hanoi Securities Company (SHS) issued VND500 billion of corporate bond thourgh private offering. Cuu Long Pharmaceutical Company successfully issued 20 millions USD of converible bond, also through private offering. SSI issued VND1,150 billion of convertible bond Total bond trading in February was VND 165,883 billion, of which VND 81,662 billion was outright and the other VND 84,261 billion was repo. The daily average trading this month was VND 8,294 billion/day. As of the end of, total outstanding value of bond, guaranteed bond and municipal bond is VND 1,016,838 billion. The market share of bonds in total bond outstanding value was 83.94% or VND 853,494 billion, came next was -guaranteed bond with 13.19% or VND141,480 billion and the remaining 2.15% is municipal bond. Data from the VBMA Market Makers Chatroom indicated that bond yield fixing at the end of February went down slightly for 1 to 7 years tenor compared to the previous month.

2 Primary market Issuance Plan for 2018 On the 26th of, The issued the Letter No. 701/KBNN-QLNQ on the Plan for bond issuance for According to the announcement, the total expected issuance amount for 2018 is VND 200,000 billion, classified by tenors as below: No. Volume 1 Under 5 years 20,000 VND bn 2 5 years 30,000 VND bn 3 7 years 36,000 VND bn 4 10 years 37,000 VND bn 5 15 years 32,000 VND bn 6 20 years 20,000 VND bn 7 30 years 25,000 VND bn The raised VND10,015 billion via bond auctions, 84.9% of the amount offered. In, there were 6 bond auction sessions in the primary market which helped the raise VND10,015 billion out of the VND11,800 billion offered (rate of 84,9%) bond auction results in : No. Bidding code (year) Offering bn) Winning bn) Coupon rate (%/year) Winning rate (%/year) 1 07/02/2018 TD ,000 1,850 4,3 4, /02/2018 TD , ,2 4, /02/2018 TD ,950 1,950 4,3 3, /02/2018 TD ,950 1,950 4,3 3,4 5 28/02/2018 TD ,950 1,950 4, /02/2018 TD ,950 1,950 5,2 4,4 Total 11,800 10,015 Page 2

3 VND Billion Offering and winning of bond in the last 13 months. 60,000 50, % 83.7% 89.1% 90.1% 92.5% 100.0% 97.3% 84.9% 100% 90% 80% 40, % 60.6% 70% 60% 30, % 50% 40% 20,000 10, % 26.3% 30% 20% 10% 0 Feb March April May June July August Sept Oct Nov Dec Jan Feb Winning Offering Winning/Offering ratio 0% auctions result in, classified by tenors. No. Offering bn) Winning bn) Winning/Offering ratio 1 5 Year 1,950 1, % 2 7 Year 1,950 1, % 3 10 Year 3,950 3, % 4 15 Year 3,950 2, % Total 11,800 10, % In, the accomplished 65.29% of the issuance plan of the first quarter 45,000 billion). Payment Calendar in March code (year) Payment Calendar in Issued Maturity Payment Actual payment Coupo n rate (%) Interest paid Bn) TD /03/ /03/ /03/ /03/ TD /03/ /03/ /03/ /03/ TD /03/ /03/ /03/ /03/ TD /01/ /03/ /03/ /03/ Principal paid Bn) Page 3

4 TP1A /03/ /03/ /03/ /03/ TD /03/ /03/ /03/ /03/ TD /12/ /03/ /03/ /03/ TD /03/ /03/ /03/ /03/ TD /03/ /03/ /03/ /03/ ,000 TD /03/ /03/ /03/ /03/ ,056 - TD /03/ /03/ /03/ /03/ TD /03/ /03/ /03/ /03/ TD /03/ /03/ /03/ /03/ TD /03/ /03/ /03/ /03/ TD /03/ /03/ /03/ /03/ TD /12/ /03/ /03/ /03/ TD /03/ /03/ /03/ /03/ TD /03/ /03/ /03/ /03/ TD /03/ /03/ /03/ /03/ TD /03/ /03/ /03/ /04/ ,650 TD /03/ /03/ /03/ /04/ Corporate SHS successfully issued VND500 billion worth of bonds Source:, VBMA Saigon - Hanoi Securities Joint Stock Company (SHS) has announced the completion of the issuance of VND500 billion of bonds through private placement in their first issuance phase of The purpose of this issuance is to supplement the capital fund for margin lending. The bonds issued are not convertible with no collateral and offer price of 1 million VND/ bond, 2 year term from the of issuance (06/02/ /02/2020). The fixed coupon rate is 8.8%/ year, with the interest paid twice per year. Cuu Long Pharmaceutical Company issued 20 million USD of convertible bonds Cuu Long Pharmaceutical Joint Stock Company has completed the private placement issuance of 20 million USD of convertible bonds to Rhino Asset Management Co., Ltd (RAM) The total issuance amount is equivalent to VND450 billion. The convertible bonds have coupon rate of 1% per annum, calculated in USD with five year tenor and conversion price of 25,000 VND/share. SSI successfully issued VND1.150 billion worth of convertible bonds Saigon Securities Incorporation successfully issued VND1,150 billion of convertible bonds with a term of 3 years with the coupon rate of 4% per annum. The estimated conversion price is 31,000 VND. Page 4

5 VND Billion Secondary Market The total trading in February was VND165,883 billion Total bond trading in February was VND165,883 billion, of which VND81,662 billion was outright and the other VND84,261 billion was repo. The daily average trading this month was VND8,294 billion/day. Trading value in the last 13 months bn) 140, , ,000 80,000 84,327 81,061 67,609 92, , , , , ,063 97, , ,776 81,622 60,000 40,000 20,000 0 Feb March April May June July August Sept Oct Nov Dec Jan Feb s with large of outright trading in. No category code TD TD TD TD Issuer Issued (year) Volume bn) 04/01/ /02/ /02/ /02/ TB /06/ Page 5

6 bonds still accounted for the large majority of total bond outstanding. As of the end of, total outstanding value of bond, guaranteed bond and municipal bond was VND1,016,838 billion. The market share of bonds in total bond outstanding value was 83.94% or VND853,494 billion, came next was -guaranteed bond with 13,91% or VND141,480 billion and the remaining 2.15% was municipal bond. Outstanding bond value market share at the end of : 2.15% 13.91% bond 83.94% Gov'-guaranteed bond Municipal bond Movements of VBMA s Yield Fixing in Data from the VBMA Market Makers Chatroom indicated that bond yield fixing at the end of February went down slightly across tenors 1 to 7 years compared to the previous month. VBMA Gov Yield Fixing Curve at the end of December 2017, January 2018 and 6.00% 5.50% 5.00% 4.50% 4.00% 3.50% 3.00% 2.50% 2.00% 1y 2y 3y 5y 7y 10y 15y December 3.57% 3.81% 3.92% 4.29% 4.53% 5.14% 5.60% January 2.84% 3.00% 3.08% 3.35% 3.57% 4.23% 4.41% February 2.48% 2.69% 2.83% 3.26% 3.54% 4.25% 4.50% Source: VBMA Page 6

7 13-Feb Feb-17 5-Mar Mar Mar-17 4-Apr Apr Apr-17 4-May May May-17 3-Jun Jun Jun-17 3-Jul Jul Jul-17 2-Aug Aug Aug-17 1-Sep Sep Sep-17 1-Oct Oct Oct Oct Nov Nov Nov Dec Dec Dec-17 9-Jan Jan Jan-18 8-Feb Feb Feb-18 Movement of VBMA Gov yield fixing in the last year. 8% 7% 6% 5% 4% 3% 2% 1% 1y 2y 3y 4y 5y 7y 10y 15y Source: VBMA Thank you for reading VBMA s Monthly 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 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. Page 7