The Song Da and Hoa Phat Corporations’ successful issuing of thousands of billions of VND worth of bonds

Hanoi (VNA) - The Song Da and Hoa Phat Corporations’ successful issuing of
thousands of billions of VND worth of bonds in July is continuing to heat up the
corporate bond market.

The Song Da Corporation issued bonds worth a total of 1.5 trillion VND, or 79
million USD with a five year maturity and an interest rate of 15 percent for the
first year while the Hoa Phat Corporation raised 800 billion VND, equivalent to 42
million USD, from bonds that mature in three years.

Several larger companies have raised capital this way, such as Vietnam
Electricity, the Vietnam Construction and Export Import Joint Stock Company, which
issued two trillion VND worth of bonds each and the Vincom Joint Stock Company
which issued one trillion VND in bonds.

These moves showed that the corporate bond market is thriving and that
investor’s confidence has improved. In this way, businesses can access middle
and long-term capital at a stable interest rate and there is less pressure on the
banks to supply capital.

According to financial experts, the recovery in the economy, a stable inflation
rate and a prime interest rate of 8 percent have had a positive impact on
businesses and investors.

It is forecast that the corporate bond market will be more vibrant when limited
liability companies are allowed to issue bonds under a new draft decree.-Enditem