DNVN - VIS Rating's report shows that the rate of overdue corporate bonds at the end of August decreased slightly compared to the previous month, but in September the total value of matured bonds reached VND24.5 trillion, VND18.1 trillion higher than the previous month.
Late payment rate drops to 14.9%
According to the corporate bond market overview report for August 2024 recently released by Vietnam Investment Credit Rating Joint Stock Company (Vis Rating), in August, a corporate bond (TPDN) with a total face value of VND 450 billion announced a delay in paying coupon interest for the first time. This bond was issued by Novaland Group in August 2020 with a term of 3 years, and by July 2023, the maturity date had been postponed by one year. However, in July 2024, this bond was extended once again to August 2025.
The total number of newly issued overdue bonds from the beginning of the year to the end of August 2024 was VND12.7 trillion. The cumulative overdue rate at the end of August 2024 decreased slightly to 14.9% compared to 15.1% in the previous month. About 63% of the value of the cumulative overdue bonds came from the residential real estate group, with a cumulative overdue rate of 31%.
Also in August, 13 late-payment issuers in the residential real estate, retail, and agricultural sectors repaid a total of VND2.4 trillion in principal to bondholders. After partial repayment, the remaining outstanding late-payment bonds of this group of issuers were VND8.5 trillion.
VIS Rating forecasts that within the next 12 months, an estimated 18% of the VND245 trillion of maturing bonds are at risk of late principal repayment.
The majority of late principal payments of corporate bonds in August 2024 were related to the Agricultural Products and Materials Import-Export Joint Stock Company (CAJIMEX). CAJIMEX issued bonds in 2020 and matured in December 2026, but then delayed the first coupon payment in 2023. By August 2024, CAJIMEX had completed the repurchase of all bonds as agreed with bondholders.
Of the total 567 overdue bonds issued since 2022, 63 bonds have paid all overdue principal and interest to bondholders, and 294 bonds are in the process of restructuring. The overdue recovery rate of overdue bonds increased to 20.8% at the end of August.
High-risk maturing corporate bonds
VIS Rating's report shows that in September, the total value of maturing bonds reached VND24.5 trillion, VND18.1 trillion higher than the previous month. VIS Rating estimates that among the bonds maturing in September 2024, VND1.8 trillion is at risk of late principal repayment, most of which have previously delayed bond interest payments.
An estimated 18% of the VND245 trillion of maturing bonds are at risk of default over the next 12 months, with 76% of the value of high-risk bonds belonging to companies in the residential real estate and construction sector.
Regarding new issuance, in August, the amount of new bonds issued increased to VND57.7 trillion, from VND46.8 trillion in July. Commercial banks issued a total of VND51.3 trillion, continuing to account for the majority of new issuances.
Of the bonds issued by banks in August 2024, 40% 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, Vietnam Bank for Agriculture and Rural Development, Loc Phat Vietnam Joint Stock Commercial Bank, Ho Chi Minh City Development Joint Stock Commercial Bank and Vietnam Joint Stock Commercial Bank for Investment and Development.
These Tier 2 bonds have an average maturity of 8.1 years and interest rates ranging from 5.5% to 7.6% in the first year. The other bonds are unsecured bonds with a maturity of 3 years and fixed interest rates ranging from 5.2% to 7.7%.
Of the total VND272.7 trillion newly issued since the beginning of the year, 23 public issuances accounted for VND39.1 trillion.
Thu An
Source: https://doanhnghiepvn.vn/kinh-te/chung-khoan/trai-phieu-doanh-nghiep-thang-8-2024-ty-le-cham-tra-giam-nhung-sap-dao-han-co-rui-ro-cao/20240913043746902
Comment (0)