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Real Estate Surpasses Banks to Lead Corporate Bond Issuance

27/07/2026 - 08:41      58 view
The corporate bond market became increasingly active again in June 2026, recording the highest issuance value in the past year. Notably, for the first time since the beginning of the year, real estate companies surpassed banks to become the largest bond-issuing sector, reflecting a clear shift in capital flows across the market.
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Real estate corporate bonds rise to the top of the market. Photo: T.H.

Real Estate Leads the Corporate Bond Issuance Market

According to the latest report by MBS Research, the corporate bond market was active in June, with 82 issuances totaling VND 124.4 trillion, up sharply by 128% from the previous month and down only 1% year-on-year. This was also the highest monthly issuance value recorded in the past year.

The market continued to be driven primarily by the banking and real estate sectors, which together accounted for 89% of total issuance value during the month.

Notably, real estate companies recorded a record issuance value of VND 53.6 trillion, up 265% year-on-year.

Among them, Vinhomes Joint Stock Company led the market with VND 21 trillion in bonds issued, with maturities ranging from 24 to 38 months and interest rates of 12–12.5% per annum. This was followed by Hung Phat Invest Hanoi Company Limited, with VND 9.3 trillion issued, maturities ranging from 12 to 60 months, and interest rates of 10–10.6%; and Parkland 53 Company Limited, which issued VND 7 trillion in 12-month bonds at an interest rate of 10%.

In contrast, although the banking sector recorded its highest monthly issuance value since the beginning of the year, it still declined by 42% year-on-year to VND 57.2 trillion.

Among banks, Saigon Tai Loc Commercial Joint Stock Bank was the largest issuer, with VND 13.3 trillion in bonds issued, maturities ranging from 24 to 72 months, and interest rates of 8.5–9.2% per annum. This issuance was part of a VND 40 trillion issuance plan to supplement Tier 2 capital and also marked the bank’s return to the corporate bond market after an absence of nearly two years.

In the first six months of 2026, total corporate bond issuance reached nearly VND 273.5 trillion, up 1.8% year-on-year.

Notably, real estate companies surpassed banks to become the largest issuing sector, with total issuance reaching VND 123.4 trillion, up 197% year-on-year and accounting for 45% of total market issuance, compared with only 15.5% during the same period last year.

The weighted average interest rate for real estate bonds was 10.2% per annum, with an average maturity of 3.2 years.

Meanwhile, the banking sector accounted for 44.2% of total issuance, with VND 120.8 trillion issued, down 39.4% year-on-year. Its weighted average interest rate stood at 8.5% per annum, with an average maturity of 4.6 years.

According to MBS Research, the weighted average corporate bond interest rate in the first six months of 2026 was estimated at approximately 9.4%, higher than the 7.3% recorded in 2025. This was mainly attributable to deposit interest rates remaining elevated, prompting issuers to raise coupon rates to attract capital. At the same time, the issuance structure shifted significantly toward the real estate sector, which has considerably higher interest rates than other sectors.

Bond Buybacks Surge, Reducing Maturity Pressure in Q3

In addition to the strong issuance activity, the corporate bond market in June also recorded a very high value of early bond redemptions.

The total value of corporate bonds redeemed before maturity reached approximately VND 70.6 trillion, up 10.8% year-on-year and marking the highest level seen in several years.

The banking sector accounted for as much as 94% of total redemptions, at approximately VND 66 trillion, up 24% year-on-year. Meanwhile, the energy sector recorded more than VND 2 trillion in redemptions, 2.1 times higher than the same period last year, accounting for approximately 3% of total redemptions during the month.

In the first six months of 2026, approximately VND 152.2 trillion worth of corporate bonds were redeemed before maturity, up 21.6% year-on-year. The banking sector remained the primary contributor, accounting for 87% of total redemptions, up 77% year-on-year.

Regarding maturity pressure, MBS Research estimated that approximately VND 30.9 trillion worth of corporate bonds would mature in Q3 2026, down 47% year-on-year. Real estate companies accounted for the largest share, at approximately 61%, equivalent to VND 18.9 trillion.

In the Government bond market, the State Treasury held 20 auctions in June, with a total offered value of VND 68 trillion, down 0.7% from the previous month. However, the successfully raised amount was only nearly VND 23.4 trillion, down 30.5%, corresponding to a successful bidding rate of less than 35%. This reflected a gap between the interest rate expectations of the State Treasury and investors.

In the first six months of 2026, total Government bond issuance reached nearly VND 182.6 trillion, down 9.3% year-on-year and equivalent to only 36.5% of the annual issuance plan. Bonds with a 10-year maturity accounted for 83% of total issuance.

In Q2 alone, actual issuance reached VND 102.5 trillion, equivalent to 68.3% of the quarterly plan. For Q3, the State Treasury announced a Government bond issuance plan of VND 120 trillion, 20% lower than the Q2 plan.

In June, winning yields for maturities ranging from 5 to 30 years increased by 3–18 basis points compared with the previous month. At the final auction of the month, winning yields for 3-year, 5-year, 10-year, 15-year, and 30-year bonds were 3.52%, 4.18%, 4.35%, 4.40%, and 4.58% per annum, respectively.

Against this backdrop, experts expect the corporate bond market to continue serving as an effective capital-raising channel for businesses in the second half of the year.

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