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Thursday, June 20, 2024

Eighty-two companies delay bond repayments in H1

The Saigon Times

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HCMC – A recent report by MBS Research said that 82 companies have deferred the payment of principal and coupon on their bonds from January to June.

The real estate sector has borne the brunt of the delays, with 73% of the postponed payments attributed to businesses in this sector.

During the second quarter of 2023, the total value of delayed bond repayments reached nearly VND24.3 trillion, contributing to an estimated overdue debt of VND183 trillion for the year thus far. These delayed payments constitute 17% of the overall outstanding corporate bond value.

Despite persistent woes, the corporate bond market showed signs of improvement in the second quarter, backed by a surge in bond issues in June, totaling over VND30.6 trillion.

The banking sector played a significant role in this period, actively engaging in the issuance of bonds worth VND19.8 trillion, which accounted for 55% of the total value of bond sales over the three months.

However, the first half of the year saw a sharp decline of 65% in corporate bond issues against the same period last year, the steepest fall in the market in five years.

Throughout this period, the real estate sector dominated bond issues, contributing to more than 50% of the total bond value issued since the beginning of the year.

Key issuers in this segment include Hung Yen Urban Investment and Development Company, Nam An Investment And Trading JSC, and Southern Star Urban Development and Trading Investment JSC.

Hung Yen Company issued bonds valued at VND7.2 trillion, while the others each sold VND4.7 trillion in bonds.

On the other hand, the banking sector witnessed the involvement of 10 lenders in bond issues during the first half of the year, raising VND20.2 trillion through this channel.

Techcombank and TPBank led the way with the highest bond issues, at VND8 trillion and VND3.8 trillion, respectively, followed by HDBank and OCB with VND2 trillion each.

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