DNVN - Vis Ratings estimates that in August 2024, about VND 7.3 trillion out of VND 18.6 trillion of maturing bonds with high risk of not being able to repay principal on time, an increase compared to the previous month because the amount of maturing this month is 3 times higher than in July.
The corporate bond market report recently released by Vietnam Investment Credit Ratings Joint Stock Company (Vis Ratings) shows that in July 2024, the volume of new bonds issued was VND42.8 trillion, lower than the value of VND82.4 trillion recorded the previous month.
Of the bonds issued by the banking group in July 2024, 55% are secondary debt bonds issued by the Military Commercial Joint Stock Bank, Ho Chi Minh City Development Joint Stock Commercial Bank, Nam A Commercial Joint Stock Bank and Vietnam Joint Stock Commercial Bank for Investment and Development with an average term of 7.1 years and interest rates from 5.9% - 7.5% in the first year, floating in the following years with a difference of 1.2% - 28% compared to the reference.
Other priority debt bonds issued by other banks have a term of 3 years with fixed interest rates throughout the term from 4.6% - 5.5%.
In the first half of 2024, the amount of new bonds issued reached VND202.4 trillion, of which 70% was issued by the banking sector.
Vis Ratings estimates that in August 2024, about VND 7.3 trillion of the VND 18.6 trillion of maturing bonds are at high risk of not being able to repay the principal on time.
Regarding high-risk maturing bonds, Vis Ratings estimates that of the VND18.6 trillion of bonds maturing in July 2024, about VND7.3 trillion of high-risk bonds will not be able to repay principal on time.
Over the next 12 months, about 20% of the VND259 trillion of maturing bonds are bonds with high risks of late principal payments.
Meanwhile, the value of high-risk maturing bonds in August 2024 was higher than that in July 2024. Specifically, in August 2024, Vis Ratings estimated that about VND 7.3 trillion of the VND 18.6 trillion of high-risk maturing bonds could not repay their principal on time, mainly from the residential real estate and energy sectors. The VND 7.3 trillion increase compared to the previous month was due to the amount of maturing in August 2024 being 3 times higher than the previous month.
According to this credit rating company, among the high-risk maturing bonds in August 2024, VND4.3 trillion of bonds were issued by companies in the construction and residential real estate industry.
Of these, Nova Land, Hung Thinh Land and Dai Thinh Phat are the issuers that have delayed paying many bonds since 2023. The remaining amount was issued by a company in the service industry group. As of the reporting date, this company has not yet disclosed its 2023 financial data as required on the Hanoi Stock Exchange portal.
Regarding newly arising late principal/interest payments, according to Vis Ratings data, the total value of newly arising late payment bonds since the beginning of the year is VND 12.2 trillion. The total value of bonds with first late payment in July 2024 was VND 1.24 trillion, lower than in June 2024 (VND 2.2 trillion).
In July 2024, there were 5 bonds announced to be late for the first time issued by Sunrise Vietnam Investment and Construction Joint Stock Company (Sunrise), Big Gain Investment Company Limited and Song Han Sun Company Limited with a total value of outstanding corporate bonds of VND 1.24 trillion, a lower value than the previous month. Of which, Sunrise and Song Han Sun are the two enterprises that violated the bond payment delay for the first time.
Specifically, Big Gain Investment Company Limited is late in paying the principal of the due bonds of VND 438 billion because it can only pay VND 562 billion out of the total VND 1,000 billion of bonds due on July 30, 2024.
Sunrise Vietnam Investment and Construction JSC is late in making the first payment of both principal and interest due on July 15, 2024. Then, on August 1, 2024, the company was approved by bondholders to extend the maturity date by another 2 years to July 15, 2026.
Song Han Sun Company Limited was late in paying the principal balance of VND 300 billion on July 4, 2024, then paid it all back on August 1, 2024 and currently has no outstanding bond balance.
Thu An
Source: https://doanhnghiepvn.vn/kinh-te/tai-chinh-ngan-hang/tang-so-doanh-nghiep-co-nguy-co-cham-tra-trai-phieu-trong-thang-8-2024/20240815035937320
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