Though bond term extensions and successes in reissuing new bonds have brought some respite for real estate firms, the limited time available for debt restructuring, coupled with the escalating coupon rates associated with these extensions and issuances, is creating a wave of uncertainty. Higher coupon rates With cash flow challenges plaguing real estate businesses, many have opted to negotiate with bondholders to extend the terms of their bonds. The implementation of Decree 08 has led to a flurry of activity in these extension negotiations. However, there is a potential drawback to this solution, which is the possibility of higher financial expenses for companies in the future due to higher coupon rates. A recent report from the Hanoi Stock Exchange (HNX) showed that more than 30 bond-issuing organizations had extended the terms of their bonds worth over VND42 trillion by the end of June. The extension periods for these bonds range from one to 24 months, with several major enterprises sealing high-value deals. Phu Long Real Estates Corporation secured a two-year extension for 12 bond lots totaling VND14 trillion. Sovico Group also succeeded in negotiating a two-year extension for 52 bond lots worth around VND9.6 trillion. Novaland Group obtained extensions for […]
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