Great pressure to pay corporate bond principal and interest in May

Total principal debt of corporate bonds due for payment in the non-bank group in the second quarter of 2025 is expected to be about VND 24.4 trillion, an increase of 26.6% compared to the first quarter.

Data from FiinTrade shows that cash flow payable from bonds is expected to be more than VND17.9 trillion in May 2025, a sharp increase compared to April.

Mainly focused on real estate and retail

The pressure to repay bond principal increased significantly in the non-bank group. Specifically, in May 2025, the total principal value of corporate bonds due for payment of the non-bank group was estimated at VND 11.4 trillion, double the level of VND 5.3 trillion in April, but slightly decreased compared to March (VND 13 trillion).  

The real estate group is expected to have about VND3.5 trillion worth of bonds maturing in May, accounting for 31% of the total maturing value of the entire market in the month and increasing by 20.3% compared to April's estimate. Some issuers with bonds maturing in the month include Phu Long Real Estate (VND1.4 trillion), Sunshine House Business (VND1.1 trillion), and Sunbay Ninh Thuan (VND855 billion).  

In the Retail group,   It is expected that 3,000 billion VND of bond principal will mature in May 2025 and all will belong to Wincommerce. After settling these maturing bonds, Wincommerce will have no outstanding bond debt.  

Total principal debt of corporate bonds due for payment in the non-bank group in the second quarter of 2025 is expected to be about VND 24.4 trillion, an increase of 26.6% compared to the first quarter. Maturity pressure in the non-bank group is expected to peak in the third quarter of 2025.

FiinTrade said that thanks to the recent positive move to buy back corporate bonds early, the principal value of bonds due in 2025 of the non-bank group decreased slightly to VND159.8 trillion compared to the estimate at the beginning of the year of VND171.9 trillion.

Regarding interest payment cash flow, the expected interest payable for the whole market in May 2025 increased by 48% compared to April 2025.  

The cash flow for bond interest payments of the non-bank group this month is estimated at about VND5,000 billion, higher than the average of the first 4 months of the year (about VND4.3 trillion/month).  

Real estate continues to be the industry group with a high proportion, accounting for 39% of the total interest payable in the whole market. In addition, the Construction & Materials, Utilities, Tourism and Entertainment sectors also recorded significant interest payment cash flow in the month, but it will be significantly lower than Real estate.

In the second quarter of 2025, the total expected bond interest value due for payment of the non-bank group is about VND 16.2 trillion, up from VND 13.5 trillion in the first quarter and concentrated in June (VND 7.3 trillion).  

Interest payment pressure is expected to be high in the third quarter of 2025, reaching VND17.9 trillion, mostly in the Real Estate, Tourism and Entertainment, Financial Services, Construction and Materials sectors.

Monopoly securities bonds issued by non-bank groups

Previously, in the first quarter of 2025, the total value of corporate bond issuance reached nearly VND 22.8 trillion, down sharply by 85.6% compared to the fourth quarter of 2024 and down 21% compared to the first quarter of 2024.

FiinTrade said that this decline was mainly due to seasonal factors (Tet holiday) along with stricter regulations on corporate bond issuance under the amended Securities Law 2024 (effective from January 1, 2025) and Circular 76/2024/TT-BTC (effective from December 25, 2024).

In the first quarter of 2025, the cumulative issuance of corporate bonds to the public reached nearly VND20.8 trillion, 3.3 times higher than the previous quarter and up 51.6% year-on-year, marking the highest quarterly public issuance in the past 5 years. In contrast, private issuance was modest, reaching only VND2 trillion in March (belonging to ACB and Rong Viet Securities Company), down sharply by 81% year-on-year. This is also the first month of private issuance in 2025.

In the first quarter of 2025, the value of bonds issued by banks reached nearly VND 17 trillion, a sharp increase of 235.7% compared to the first quarter of 2024. In the non-bank group, the total value of issuance in the quarter reached VND 5.8 trillion, marking a record low for the group so far. Previously, in the fourth quarter of 2024, the non-bank group mobilized more than VND 80 trillion through corporate bond issuance, far exceeding the average of the previous 3 quarters (VND 30.2 trillion).  

It is noteworthy that in March, except for the Securities industry, no other industry in the non-banking group issued bonds.  

In particular, the complete absence of the Real Estate sector – which used to account for a large proportion in previous periods – continues to show the pressure and difficulty in mobilizing capital through corporate bonds in this group.

The entire value of new issuance in March and the first quarter of 2025 of the non-banking group belongs to the financial services industry, specifically securities companies.

After the public bond issuance by DNSE in January, the market continued to record another public issuance from VPS Securities with an issuance value of VND5 trillion and a private issuance from Rong Viet Securities Company (VDS) with an issuance value of VND500 billion in March, with a term of 1-2 years and an average coupon interest rate of 8.3%/year.

Source: https://baodautu.vn/ap-luc-lon-phai-tra-goc-lai-trai-phieu-doanh-nghiep-trong-thang-5-d278801.html