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Tuesday, June 18, 2024

VND17.7 trillion in corporate bonds to fall due this month

The Saigon Times

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HCMC – The amount of corporate bonds falling due in March is VND17.7 trillion, triple the figure in the previous month, showed data from the Vietnam Bond Market Association.

Of the total, the real estate sector accounted for 43%, at nearly VND7.7 trillion, the consumer goods sector 29% at VND5.1 trillion, and the construction industry 12.8% at over VND2.2 trillion.

The month has yet to see neither early buybacks of bonds nor new corporate bond issues.

So far, companies have redeemed bonds worth VND15.3 trillion, surging 43% over the year-ago period. February alone made up over VND5.9 trillion of the total, up 34% against the same period in 2022.

Meanwhile, the year has seen many debt-issuing organizations falling behind coupon repayment schedules.

With hardships plaguing the bond market in mind, the Government has issued Decree 08.

The decree is seen as a lifeline for cash-strapped bond issuers as it enables them to extend coupon payments by up to two years and settle debts by assets provided that they secure prior approval from bondholders.

Besides, some articles of Decree 65/2020 were suspended until December 31 this year. These provisions require professional individual investors to hold an investment portfolio worth at least VND2 billion for 180 days or longer and debt-issuing organizations to report their credit ratings and sell their bonds within 30 days.

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