DNVN - Among the VND5.4 trillion of bonds at risk of not being able to repay principal on time, there are bonds worth VND5.2 trillion issued by companies in the construction and residential real estate sector such as Nova Land, Nam Land, Big Gain, Dai Thinh Phat and Kita Invest that previously failed to pay interest on time in 2023.
Two new bonds with delayed principal payment in June
According to the June 2024 corporate bond market overview report just released by Vietnam Investment Rating Joint Stock Company (VIS Rating), in June 2024, two bonds were announced to be delayed for the first time issued by Big Gain Investment Company Limited and Ninh Thuan Energy Industry Joint Stock Company with a total value of outstanding corporate bonds (TPDN) of VND 2.16 trillion.
Of which, Ninh Thuan Energy Industry JSC is late in paying principal debt worth VND2.08 trillion. The company currently owns the Thien Tan solar power project, although it has generated electricity to the grid, it is late in enjoying preferential electricity prices (FIT). With a recorded loss of VND242 billion in 2023, VIS Rating assesses that this issuer has weak debt repayment capacity.
Big Gain Investment Company Limited has repaid 92% of the principal balance of this overdue bond by exchanging assets such as receivables from loans and business cooperation contracts.
The rate of overdue bonds in the whole market at the end of June 2024 was 15.6%.
The rate of overdue bonds in the whole market at the end of June 2024 was 15.6%, down from 15.9% at the end of May 2025.
Regarding debt restructuring, in June 2024, 8 TCPHs partially repaid overdue bonds in the fields of residential real estate, other financial institutions and construction. The total amount of repayment was VND 1.57 trillion, equivalent to 12% of the total value of outstanding bonds of this group.
Most of the value of late principal and interest bond repayments in June 2024 was from 3 real estate companies in the residential real estate group, namely Saigon Glory, S-Homes Real Estate Investment and Trading, and DCT Partners Vietnam. VIS Rating believes that these 2 companies have actively repaid late principal and interest bonds in the first half of 2024.
The recovery rate for overdue bonds across the market increased by 0.5 percentage points to 18.1% this month. However, the recovery rate for the energy sector decreased by 1.8 percentage points to 17.6% compared to the end of May 2024 due to new overdue bonds in June 2024.
Many businesses are at risk of late bond payments.
Regarding high-risk bonds, VIS Rating estimates that VND5.4 trillion of bonds are at risk of not being able to repay principal on time out of VND9 trillion of bonds maturing in July 2024.
Of the VND5.4 trillion of bonds at risk of not being able to repay principal on time, there are bonds worth VND5.2 trillion issued by companies in the construction and residential real estate sector such as Nova Land, Nam Land, Big Gain, Dai Thinh Phat and Kita Invest that previously failed to pay interest on time in 2023. The remaining bonds at risk of not being able to repay principal on time were issued by a company in the service sector. As of the reporting date, this company has not yet disclosed its 2023 financial data as required on the Cbond portal of the Hanoi Stock Exchange.
About 18% of outstanding bonds worth VND207 trillion (US$10.8 billion) will mature in the next 12 months. VIS Rating estimates that 27% of bonds are at risk of default, mainly in the residential real estate and construction sectors. 65% of these bonds have previously delayed interest payments.
Meanwhile, the volume of new bond issuance in June 2024 reached VND69 trillion, a sharp increase compared to the value of VND29 trillion in May 2024. Most of the new issuances in June 2024 were from the banking sector.
Among the bonds issued by the Military Commercial Joint Stock Bank and Vietnam Development Commercial Joint Stock Bank, the average maturity is 8.5 years and the interest rate is 5.8%-7.9% in the first year. Other priority debt bonds issued by other banks have a maturity of 3 years with fixed interest rates ranging from 4.6%-5.5%.
In the first half of this year, the volume of new bond issuance reached VND150 trillion, up 121% over the same period in 2023 and gradually increased from March 2024.
Thu An
Source: https://doanhnghiepvn.vn/kinh-te/chung-khoan/hang-loat-doanh-nghiep-co-nguy-co-cham-tra-trai-phieu/20240717054151911
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