22% of bonds maturing in January 2025 are at risk of late principal repayment

DNVN - According to VIS Rating, there are 5 trillion VND of bonds maturing in January 2025, 2 out of 9 bonds are at risk of late principal repayment, both are in the residential real estate industry group.

The December 2024 corporate bond market overview report just released by VIS Rating shows that in December 2024, two bonds were late for the first payment belonging to Nova Real Estate Investment Group Corporation (Novaland) with a total bond principal value of VND 830 billion.

According to the information announcement on January 3, 2025, Novaland is negotiating with bondholders and will pay the late payment before January 8, 2025. VIS Rating has no information on the payment progress of this amount. Previously, Novaland's Board of Directors also announced information on the repurchase of 21 company bonds with a total maximum value of VND 7,000 trillion, including the above 2 bonds.

As of now, 11 issuers have delayed the first principal/interest payment in 2024, a significant decrease compared to 79 issuers that delayed the principal/interest payment in 2023.

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The cumulative delinquency rate at the end of December 2024 remained at 14.5%. The energy group had the highest delinquency rate at 43%, while the residential real estate group accounted for 62% of the total delinquent bonds.

VIS Ratings expects the actual amount of new defaulted bonds to be higher than the current figures. The credit rating agency estimates that there are 15 high-risk bonds that will not be able to repay their principal on time by December 2024.

The data in this report is updated as of January 6, 2025 based on data published on the homepage of the Hanoi Stock Exchange.

Regarding high-risk corporate bonds (TPDN) about to mature, VIS Rating believes that there are 5 trillion VND of bonds maturing in January 2025, 2 out of 9 bonds at risk of late principal repayment, equivalent to 22.2%. Both are in the residential real estate industry group.

The list of bonds maturing in January 2025 includes bonds of Southeast Asia Commercial Joint Stock Bank, Century Real Estate JSC, Thanh Thanh Cong Tourism JSC, Asia Pacific Securities JSC, Dat Viet Development JSC, Coteccons Construction JSC, Hoa Binh Construction Group JSC, Vinfast Production and Trading JSC.

In 2025, about 110 trillion VND of bonds issued by real estate companies will mature. Of these, 31 trillion VND has been delayed in paying principal and interest. These bonds were delayed in paying interest or principal before being extended to 2025.

Of the VND224 trillion of bonds maturing in 2025, VIS Rating estimates that 17% are at risk of late principal repayment. 94% of the value of these risky bonds comes from the residential real estate and tourism and resort groups.

Regarding the handling of late-payment corporate bonds, the report shows that in December 2024, 10 late-payment corporate bonds in the fields of residential real estate, energy, construction, resort tourism and agricultural products have repaid a total of VND 2,768 billion in principal to bondholders. Of which, Thai Binh Real Estate Trading JSC and Vinh Ngoi Sao Company Limited have repaid the entire remaining principal of the bonds.

Novaland announced that it had fully repaid the principal of 5 bonds to bondholders with a total bond principal value of VND1,550 billion. These bonds were late in paying coupon interest in July and August 2023. In 2024, the company repaid about VND2 trillion in bond principal, reaching only nearly 10% of the total principal value of the bonds with delayed principal and interest payments, showing that the company continues to face difficulties in handling late-payment corporate bonds.

Hung Thinh Land JSC has repaid VND28.4 billion of bond principal by exchanging other assets. This TCPH did not disclose details of the type of assets used for the exchange. In 2024, the principal value of the overdue bonds with interest to be repaid is less than 5% of the total amount of overdue bonds of this TCPH.

85% of the overdue bond principal to be repaid in December 2024 comes from the residential real estate group issuers with a total principal value of VND 2.3 trillion. As a result, the overdue bond recovery rate of the residential real estate group increased by 1.4% to 22.7% by the end of December 2024. The overdue bond recovery rate of the entire corporate bond market increased by 1% compared to 22.9% at the end of November 2024.

Thu An

Source: https://doanhnghiepvn.vn/kinh-te/chung-khoan/22-trai-phieu-dao-han-trong-thang-1-2025-co-nguy-co-cham-tra-no-goc/20250110030249652