Bank bond interest rates up nearly 10%

According to statistics of VnExpressin the second half of last month, 18 lots of bank bonds were successfully offered for sale with a total value of more than 19,400 billion VND. The average interest rate established a new level at 8.7% for the first interest period (12 months), about 3 percentage points higher than savings deposits of the same term. No bank, both state-owned and private, lists bond interest rates below 8%.

The common point of the banks leading the issuance interest rate is that their capital scale is in the medium and small group. Vietbank topped the list when paying 9.7% interest for two lots of bonds with a total value of 1,500 billion VND. The bank calculates floating interest with an average reference of 5.9% for the first period, plus a margin of 3.8%. This margin is a sharp increase compared to the 2.5% level usually applied to previous bond batches.

Bao Viet Bank mobilized 2,000 billion VND bonds with an interest rate of 9.63%. Next, TPBank calculated a floating interest rate of 9.3% for the latest batch of bonds, an increase of 0.3 percentage points compared to the issuance a week ago.

In larger-scale groups such as MB, VPBank or LPBank, the interest rate for attracting capital through the bond channel is fluctuating 8.6-8.7%. The notable point is that these banks all pay fixed payments, meaning they will maintain high interest rates for the next three years regardless of market fluctuations.

According to experts, bank bond interest rates increased sharply in the second quarter, especially in the last weeks of June, due to the growing imbalance between capital mobilization speed and credit growth. Bonds are an important additional capital channel when mobilizing people has difficulty and the interbank channel approaches its limit.

In addition to higher interest rates than deposits of the same term, bank bonds are attractive to investors because of many other factors. Banks are organizations with a higher level of credit than businesses, and are strictly managed and supervised by the State Bank. Therefore, bank bonds are suitable for the prudent taste of many investment funds, securities and insurance companies, especially when this group must comply with strict risk management requirements.

In a report published last week, the analysis team of Yuanta Vietnam Securities Company stated that the capital cost pressure of banks will continue to remain at a high level. This group said that the State Bank currently has little room to loosen monetary policy because of inflation pressure, exchange rates and the US Federal Reserve (Fed) have not shown signs of cooling interest rates.

Some experts believe that “there is a relatively close relationship” between bond, interbank and deposit interest rates due to the same impact from the system’s liquidity and capital needs. All three interest rates are forecast to remain high in the short term as many banks face liquidity strain.

Orient