Vuong Quan Hoang
Pham Nghiem Xuan Bac
Vietnam’s Chronology Of Bonds
Corporate bond is a type of debt financing that reaches ubiquity around the world. This financial asset, by definition, promises to give holders (also, investors) financial payoff in the form of a fixed amount of money at certain points of time in the future.
While in more developed countries, the word ‘bond’ refers to the debt instrument carrying a maturity of 10 years or more, in Vietnam a similar instrument with maturity of over one year is termed as bond. Perhaps, it is worthwhile to take a look back upon the chronology with respect to our discussed bond as a term financing vehicle. In this exploration, corporate bonds (including the specific term of ‘project bond’ as used in Vietnam) are of the primary concern, with an emphasis on their practicality and technicality. These bonds are issued by and/or on behalf of corporate entities having the need of raising external debt funding other than bank loans.
