14 bonds maturing in November 2024 are at risk of late principal payment

DNVN - 33% of bonds maturing in November 2024 are at risk of late principal payment, higher than the rate of 10.5% of bonds with late principal payment in the first 10 months of 2024. Of the 42 bonds maturing in November 2024, 14 are at risk of late principal payment.

According to the October 2024 corporate bond market overview report recently released by Vietnam Investment Rating Corporation (VIS Rating), no new overdue bonds were recorded in October 2024. In the first 10 months of 2024, the total value of newly overdue bonds was VND 16.6 trillion, VND 137.6 trillion lower than the same period last year.

The cumulative delinquency rate at the end of October 2024 was stable at 14.9%. The energy group had the highest cumulative delinquency rate at 45%, while the residential real estate group accounted for 60% of the total delinquent bonds.

Regarding high-risk maturing corporate bonds, according to VIS Rating, out of 42 bonds maturing in November 2024, 14 are at risk of late principal payments. Most of these bonds have been late in paying interest on previous bonds.

33% of bonds maturing in November 2024 are at risk of late principal payment, higher than the rate of 10.5% of bonds late principal payment in the first 10 months of 2024.

In the next 12 months, there will be about VND109 trillion of bonds maturing in the residential real estate sector, accounting for nearly half of the total value of maturing bonds. Of this, VIS Rating estimates that about VND30 trillion of bonds are at risk of late principal repayment.

In October 2024, 13 late-paying issuers in the fields of residential real estate, energy, and tourism and resorts returned a total of VND 269 billion in principal to bondholders.

According to VIS Rating, of the 42 bonds maturing in November 2024, 14 bonds are at risk of late principal payments.

50% of the total outstanding debt repaid in the month came from Yang Trung Wind Power JSC. This energy company has delayed bond interest payments in 2022 and 2023.

The late collection rate of overdue bonds increased by 0.1% to 21.5% at the end of October 2024.

Regarding new issuance, the report shows that in October 2024, the volume of new bond issuance decreased to VND28.1 trillion, from VND56.2 trillion in September 2024. Commercial banks issued a total of VND15.8 trillion, continuing to account for the majority of new issuances.

Of the bonds issued by banks in October 2024, 20% are subordinated bonds eligible for Tier 2 capital, issued by Vietnam Joint Stock Commercial Bank for Industry and Trade, Tien Phong Commercial Joint Stock Bank, Loc Phat Vietnam Commercial Joint Stock Bank and Bac A Commercial Joint Stock Bank.

Regarding the credit profile of the TCPH, VIS Rating estimates that 11% of TCPH in October 2024 have a credit profile at the 'below average' level or lower, an improvement from the previous month at 24%.

In October 2024, TCPH had a weak credit profile in the non-financial group. These TCPH had a leverage ratio and debt service capacity at the 'extremely weak' level, reflecting that their business operations did not generate enough income and cash flow to repay principal and interest.

Since the beginning of the year, 56% of the TCPH with weak credit profiles are in the residential real estate and construction group. More than half of the TCPH with weak credit profiles are newly established companies without core business activities.

Minh Thu

Source: https://doanhnghiepvn.vn/kinh-te/14-trai-phieu-dao-han-thang-11-2024-co-nguy-co-cham-tra-goc/20241108053332746