VIETNAM BOND MARKET ASSOCIATION
VIETNAM BOND MARKET REPORT October 2016 In October 2016, there were 4 government bond auctions in the primary market which helped the State Treasury raise VN19,886 billion out of the VND20,600 billion offered. The offering/winning ratio was 96.5%, higher than the 81.7% rate last month. In the corporate bond market, both Vietcombank and GELEX planned to issue VND2,000 billion of corporate bond each. Total outright bond trading volume in October was VND116,030 billion, 16.7% higher than in September. The average daily trading volume this month was VND5,525 billion. As of the end of October 2016, total outstanding value of Government bond, Governmentguaranteed bond and municipal bond is VND925,130 billion. The market share of Government bonds in total bond outstanding value was 82.04% or VND758,948billion, came next was Government-guaranteed bond with 15.39% or VND142,381 billion and the remaining 2.57% is municipal bond. Data from the VBMA Market Makers Chatroom indicated that Government bond yield fixing at the end of October decreased markedly across all tenor except 1-year compared to September. Specifically: +6.6 bps with 1-year bond, -25.7 bps in 2-year bond, -28.9 bps in 3year bond, -4.1 bps in 5-year bond, -13.6 bps in 7-year bond and -25.5 bps in 10-year bond.
VIETNAM BOND MARKET REPORT October 2016
PRIMARY MARKET The State Treasury raised VND19,886 billion via bond auctions. The winning/offering surged to 96.5% from 81.7% last month. In October 2016, there were 4 government bond auctions in the primary market which helped the State Treasury raise VN19,886 billion out of the VND20,600 billion offered. The offering/winning ratio was 96.5%, higher than the 81.7% rate last month. Table 1: Government bond auction results in October 2016:
(years)
Offering volume (VND bio)
Winning volume (VND bio)
Winning interest rate (%)
TD1646503
30
1,300
1,179
7.98
26/10/2016
TD1623483
7
1,000
700
5.45
3
19/10/2016
TD1631465
15
1,000
1,000
7.2
4
19/10/2016
TD1626457
10
1,000
1,000
6.14
5
19/10/2016
TD1636502
20
1,300
1,007
7.71
6
12/10/2016
TD1646503
30
5,800
5,800
7.98
7
12/10/2016
TD1623483
7
1,000
1,000
5.45
8
05/10/2016
TD1621488
5
1,000
1,000
4.9
9
05/10/2016
TD1626457
10
1,000
1,000
6.2
10
05/10/2016
TD1646495
30
5,200
5,200
7.98
11
05/10/2016
TD1636502
20
1,000
1,000
7.72
12
24/10/2016
BVBS16410
15
674
100
7.66
13
24/10/2016
BVBS16372
10
500
0
14 15
17/10/2016
BVBS16371
10
500
0
17/10/2016
BVBS16409
15
774
100
7.68
16
10/10/2016
BVBS16370
10
500
200
6.8
17
10/10/2016
BVBS16408
15
500
500
7.68
18
10/10/2016
BVBS16331
5
500
200
5.15
19
03/10/2016
BVBS16369
10
500
50
7.09
20
03/10/2016
BVBS16407
15
500
0
21
28/10/2016
BVDB16109
5
2,000
529
5.4
22
28/10/2016
BVDB16056
3
1,350
700
4.65
23
18/10/2016
BVDB16108
5
3,350
0
No.
Date of bidding
Bond code
1
26/10/2016
2
Tenors
Up/Down compared to the previous auction
Source: HNX, VBMA
Vietnam Bond Market Association
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VIETNAM BOND MARKET REPORT October 2016
Figure 1: Offering and winning volume of Government bond in the last 13 months. 65,000
110.0% 98.4%
55,000
96.6% 84.0%
81.5% 80.2%
45,000
96.5% 90.0%
94.6% 86.7%
82.2%
81.7% 71.9%
70.7%
70.0%
35,000 50.8%
50.0%
25,000 30.0% 15,000 10.0%
5,000 (5,000)
Oct
Nov
Dec
Jan
Feb March April
Winning volume
May
June
Offering volume
July August Sept
Oct
-10.0%
Winning/Offering ratio
Source: HNX, VBMA
Table 2: Bond auctions result in October 2016, classified by tenors. No.
Tenors
Offering amount (VND bio)
Winning amount (VND bio)
Winning/Offering ratio
1 2
5 Years 7 Years
1,000 2,000
1,000 1,700
100.0% 85.0%
3 4 5 6
10 Years 15 Years 20 Years 30 Years Total
2,000 1,000 2,300 12,300
2,000 1,000 2,007 12,179
100.0% 100.0% 87.3%
20,600
19,886
99.0% 96.5%
Source: HNX, VBMA
In the first 10 months of 2016, the State Treasury raised VND270,206 billion from Government bond auction at HNX, accomplishing 96.2% of the second adjusted issuance plan (VND281,000 billion) for this year. Government bond having payment date in November 2016 Table 3: Government bond payment in November 2016 NO.
BOND CODE
TENOR (years)
DATE OF ISSUE
DATE OF MATURITY
TOTAL ISSUING VALUE (VND BIO)
COUPON RATE (%/YEAR)
1
TD1518355
3
19-Nov-2015
19-Nov-2018
7,000
5.9
2
TD1518356
3
26-Nov-2015
26-Nov-2018
7,800
5.8
Vietnam Bond Market Association
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VIETNAM BOND MARKET REPORT October 2016
3
QH091910
10
16-Nov-2009
16-Nov-2019
250
9.9
4
TD1520269
5
05-Nov-2015
05-Nov-2020
7,948
6.5
5
TD1520270
5
10-Nov-2015
10-Nov-2020
4,650
6.6
6
TD1520271
5
12-Nov-2015
12-Nov-2020
7,185
6.6
7
TD1424204
10
15-Nov-2014
15-Nov-2024
200
6.4 Source: VBMA
Corporate Bond Vietcombank planned to issue VND2,000 billion corporate bond According to the State Securities Commission, within 90 days from the 24 th of October 2016, Vietcombank is allowed to issue VND 2,000 billion corporate bond. The bond will be unsecured and inconvertible. GELEX planned to issue VND2,000 billion corporate bond The Board of Directors of the Vietnam Electrical Equipment JSC. Discussed and approved the plan to issue about VND2,000 billion corporate bond with warrant. The bond will be issued in three phases.
Vietnam Bond Market Association
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VIETNAM BOND MARKET REPORT October 2016
SECONDARY MARKET The total trading volume in October was VND116,030 billion Total outright bond trading volume in October was VND116,030 billion, 16.7% higher than in September. The average daily trading volume this month was VND5,525 billion. Table 4: Outright trading volume in October 2016 (VND bio)
Municipal bond Governemnt Bond Gov’ Guaranteed Bond Total
Trading value
Market share
142 102,922 12,966 116,030
0.1% 88.7% 11.2% 100.0%
Source: HNX, VBMA
Figure 2: Trading value in the last 13 months (VND bio) 120,000 100,000 80,000 60,000 40,000 20,000
85,040 82,280 82,643 90,800
74,122 46,008 46,849 43,836
51,621 33,935
116,030 100,288
45,579
0 Oct
Nov
Dec
Jan
Feb
March April
May
June
July August Sept
Oct
Source: HNX, VBMA Table 5: Bonds with largest volume of outright trading in October 2016. No.
Bond Code
Issuance date
Initial tenors (Years)
Trading value (VND billion)
1 2 3 4 5 6
TD1621488 TD1518357 TD1623483 TD1623480 TD1623482 TD1518356
01-Sep-2016
5 3 7 7 7 3
4,557 3,850 3,738 3,099 3,080 3,077 21,402
03-Dec-2015 08-Sep-2016 23-Jun-2016 25-Aug-2016 26-Nov-2015
Total
Source: HNX, VBMA The total trading value of the above 6 bonds alone accounted for 18.4% of all outright Government bond trading in October. Vietnam Bond Market Association
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VIETNAM BOND MARKET REPORT October 2016
Government bonds account for the large majority of total bond outstanding. As of the end of October 2016, total outstanding value of Government bond, Government-guaranteed bond and municipal bond is VND925,130 billion. The market share of Government bonds in total bond outstanding value was 82.04% or VND758,948billion, came next was Government-guaranteed bond with 15.39% or VND142,381 billion and the remaining 2.57% is municipal bond. Figure 3: Outstanding bond value market share at the end of October 2016: 2.57% 15.39%
Government bond Gov'-guaranteed bond 82.04%
Municipal bond
Source: HNX, VBMA
Movements of VBMA’s Government Bond Yield Fixing in October 2016 Data from the VBMA Market Makers Chatroom indicated that Government bond yield fixing at the end of October decreased markedly across all tenor except 1-year compared to September. Specifically: +6.6 bps with 1-year bond, -25.7 bps in 2-year bond, -28.9 bps in 3year bond, -4.1 bps in 5-year bond, -13.6 bps in 7-year bond and -25.5 bps in 10-year bond. Figure 4: VBMA Gov’ Bond Yield Fixing Curve at the end of August, September and October 2016 7.00% 6.50% 6.00% 5.50% August 5.00%
September
4.50%
October
4.00% 3.50% 3.00% 1y
2y
3y
5y
7y
10y
Source: VBMA Vietnam Bond Market Association
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VIETNAM BOND MARKET REPORT October 2016
Figure 5: Movement of VBMA Gov’ Bond yield fixing in the first 10 months of 2016. 7.50% 7.00% 6.50% 6.00%
1y
5.50%
2y
5.00%
3y
4.50%
5y
4.00%
7y 10y
3.50% 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) 24 3974 8781 Fax: (84) 4 3974 8782 Website: www.vbma.org.vn
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.
Vietnam Bond Market Association
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