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Bond issuers struggle with debt repayment

The Saigon Times

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HCMC – Bond issuers are grappling with the burden of heavy debt amidst unfavorable market conditions, leading them to further postpone coupon and principal payments.

Several issuing companies have extended their coupon and principal payments since the beginning of June. Dat Xanh Mien Nam Investment and Services has requested a delay in paying the principal and coupon for a bond lot worth over VND6 billion. The MNRCH2123001 bond lot’s due date will be extended to June 30.

Real estate developer Hung Thinh Land has postponed the coupon payment for the H79CH2123015 bond lot, which was due on June 9 and valued at over VND23 billion, citing a credit crunch and a stagnant real estate market. The company has announced that the payment will be made in four installments.

Nam Song Hau Trading Investing Petroleum JSC and SCG Construction Group JSC are also facing similar difficulties. The due date for the PSHH2224003 bond lot from Nam Song Hau Trading Investing Petroleum JSC has been rescheduled to June 16, instead of the initial payment deadline of June 7. This two-year-term bond lot is valued at VND400 billion, with coupons totaling VND9.6 billion.

SCG Construction Group JSC has extended the tenor of the SCGCH2023001 bond lot from 36 months to 60 months, with the new due date set for December 31, 2025. This bond lot, issued in late 2020, has a total value of VND1.5 trillion.

In May, the Government issued Decree 88, assigning the Ministry of Finance to monitor the bond market’s development and closely watch bond issuers facing debt settlement difficulties in 2023.

The ministry is also responsible for reporting on the corporate bond status in 2022 and 2023 and proposing solutions to address issues in the corporate bond market by June 15.

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