90 businesses are late in paying principal and interest on bonds

Increasing number of businesses late in paying bond debt

According to Mr. Nguyen Ba Khuong, an expert from the Analysis Department of VNDIRECT Securities Joint Stock Company, as of April 15, 2025, more than 90 enterprises have been listed as having delayed interest or principal payments on corporate bonds (TPDN) according to the announcement from HNX.

In the first quarter of 2025, some enterprises have begun to delay principal payments of bonds that have been extended. These are bonds that mature before the extension in 2023 and have been extended for a maximum of 2 years. The principal amount due in the first quarter of 2025 of late-paying issuers is about VND 5,000 billion, accounting for 20.3% of the total maturity value in the first quarter of 2025 (because the banking group has repurchased all bonds that will mature in this quarter, so there are no banks in the total maturity value).

The total principal amount due in the first quarter of 2025 of late-paying issuers and bonds with maturity dates in the first quarter of 2025 that have had their terms extended is up to more than VND 11,000 billion, accounting for 45.4% of the total maturity value in this quarter.

Mr. Khuong said that the total outstanding debt of individual corporate bonds of these more than 90 enterprises is estimated to be over VND200,000 billion, accounting for about 16.5% of the outstanding debt of individual corporate bonds in the entire market. Notably, most of these issuers are enterprises in the real estate group.

According to VNDIRECT, in the first quarter of 2025, the negotiation activities to extend the bond term were still active. As of April 15, 2025, 118 issuers had reached agreements to extend the bond term with bondholders and officially reported to HNX. The total value of bonds with extended terms was more than VND 178,000 billion. Of which, the total value of bonds maturing in 2025 that were extended was more than VND 20,000 billion, accounting for 10% of the total value of individual corporate bonds maturing in 2025 and accounting for 11.2% of the total value of bonds with extended terms.

The majority of bonds with maturities extended in 2025 belong to businesses in the real estate group.

Issuers with large amounts of bonds that have reached agreements to extend in the first quarter of 2025 include: Construction Business Development Company 3 with a bond lot worth VND2,250 billion, extended for 12 months; TNL Asset Investment and Leasing JSC with many bond lots worth more than VND2,900 billion, extended for 24 months; TNR Holdings Vietnam Real Estate Investment and Development JSC with many bond lots worth more than VND2,800 billion, extended for 24 months; and Bien Dong Investment and Management Consulting LLC with a bond lot worth more than VND1,300 billion, extended for 24 months.

In the first quarter of 2025, corporate bond repurchase activities showed signs of slowing down. The total value of individual corporate bonds repurchased before maturity in this quarter was VND 27,012 billion, down 61.7% compared to the fourth quarter of 2024 and up 14.8% over the same period last year. The real estate group was the group that repurchased the most corporate bonds before maturity in the first quarter of 2025. The issuers with the largest amount of corporate bonds repurchased in this quarter included: Novaland, Ninh Thuan Energy Industry JSC, Sovico, OCB , and Hoa Dong Wind Power Company Limited.

According to estimates, the total outstanding corporate bonds of more than 90 individual enterprises.

Q2/2025: Banking group may actively issue bonds again

According to VNDIRECT, to boost economic growth in 2025, the credit growth target will be set at a high level, from which it is forecasted that credit may begin to accelerate from the second quarter of 2025 and maintain the growth momentum until the end of the year. This means that banks' capital mobilization needs in the remaining quarters of the year will increase sharply, in order to meet credit requirements, serving production and business activities and economic development projects.

In particular, the issuance of individual corporate bonds (TPDN) with long terms, similar to the issuances made in 2024, not only helps banks increase mobilized capital but also supports banks in achieving the ratio of medium and long-term mobilized capital in accordance with the regulations of the State Bank of Vietnam (SBV).

Specifically, according to current regulations, banks must ensure that the maximum proportion of short-term mobilized capital is used for medium- and long-term loans. Issuing long-term corporate bonds will help banks reduce pressure on short-term capital, while improving financial structure, thereby increasing lending capacity and meeting the increasing credit demand. Therefore, it can be expected that from the second quarter of 2025, the banking group will return and actively issue bonds to meet the growing demand for capital mobilization.

However, in the first quarter of 2025, the issuance of individual corporate bonds was not as vibrant as expected. According to data compiled by VNDIRECT, in the first quarter of 2025, there were 10 successful corporate bond issuances, with a total issuance value of about VND 25,104 billion.

However, this figure decreased sharply by 84% compared to the fourth quarter of 2024 and decreased by 12.8% compared to the same period last year, showing the market's sluggishness in the early part of the year. Of these 10 issuances, there were only 2 separate corporate bond issuances with a total issuance value of VND 2,000 billion, accounting for 8% of the total issuance value.

In contrast, the number of public issuances accounted for a larger proportion, with 8 public issuances, total value reaching VND 23,104 billion, accounting for 92% of the total issuance value in the first quarter of 2025.

Although the issuance of individual corporate bonds in the first quarter of 2025 has not had a strong breakthrough, this is only a temporary sign, possibly a sign of caution from investors and businesses in the context of an unstable market.

However, it is forecasted that when the economy recovers and credit demand increases sharply in the following quarters, especially from the second quarter of 2025 onwards, banks will tend to increase bond issuance again, in order to meet capital mobilization needs, while improving financial capacity and maintaining stability for credit activities throughout 2025.

Source: https://baodaknong.vn/90-doanh-nghiep-cham-thanh-toan-no-trai-phieu-goc-va-lai-251040.html