The Vietnamese banking sector is experiencing a surge in bond issuance, with banks like Sacombank recently completing three rounds of private bond sales that raised a total of 3.65 trillion VND. The bonds, identified by codes STB12606, STB12607, and STB12608, have a fixed interest rate of 10% per year over a six-year term.

Specifically, the STB12606 bond, valued at 420 billion VND, was issued on July 27, while STB12607 raised 2.23 trillion VND on July 30, and STB12608, worth 1 trillion VND, was issued on July 31. Each bond has a face value of 1 billion VND and will mature on July 27, July 30, and July 31 of 2032, respectively.

This issuance is part of Sacombank's plan to raise up to 20 trillion VND through private bond sales, aimed at enhancing its financial capacity and risk management. The 10% interest rate is among the highest offered by banks this year, significantly exceeding the long-term deposit rates currently available.

Other banks are also following suit. The Bank for Investment and Development of Vietnam (BIDV) has issued bonds totaling 6.675 trillion VND at a fixed rate of 8.2% per year. Vietcombank has offered bonds with a fixed rate of 7.9%, while VietABank has issued bonds at 9% per year. The Military Commercial Bank (MB) completed the issuance of 10 bond lots, raising nearly 6 trillion VND with rates between 8.3% and 8.4%.

As the demand for long-term funding increases, banks are ramping up their bond issuance efforts. Reports indicate that the average bond rates have climbed from around 8% in June to 10% by early August, marking the highest levels seen this year.

In addition to the new issuances, the market is preparing for significant bond maturities, with over 20.7 trillion VND in bank bonds set to mature soon. The total value of corporate bonds issued this year has reached approximately 289.9 trillion VND, with banks leading the buyback of bonds, totaling 149.043 trillion VND.

As the market evolves, banks are expected to continue increasing their bond offerings to meet both regulatory requirements and investor demands.