Real estate businesses double the pressure of bond maturity in July

FiinGroup's corporate bond market statistics show that as of the end of May 2025, the value of corporate bonds outstanding at the end of May 2025 exceeded VND 1.3 million billion. This figure increased by 9.3% compared to the same period in 2024 thanks to the recovery trend of new issuance activities.

In terms of issuance form, private issuance continued to be the main driving force behind the growth of the entire market, with the outstanding value reaching nearly VND 1.15 million billion at the end of May 2025, up +3.3% compared to the previous month and accounting for about 88% of the total market value. Organizations issuing private corporate bonds in May were mostly in the Banking and Real Estate sectors.

The banking sector continued to lead with a new issuance value of VND 48.5 trillion in May 2025, accounting for 72.9% of the total market, up 46.8% over the previous month and 132% over the same period.

In the first 5 months of 2025, banks mobilized nearly 100.8 trillion VND through bonds, 3 times higher than the same period last year but only equal to 35% of the total issuance value in the whole year of 2024.

The increase in issuance comes from the need to supplement medium- and long-term capital to meet capital for credit growth (for issuance with a term of <5 years) as well as comply with capital safety regulations according to Circular 41/2016/TT-NHNN and Circular 22/2024/TT-NHNN (for issuance with a term of >5 years, eligible for inclusion in Tier 2 capital). Leading in the value of bond issuance with a term of >5 years are CTG, BID, HDB and LPB while TCB and ACB are superior in the value of issuance with a term of >5 years.

On the contrary, no public issuance was recorded during the month, causing the value of corporate bonds issued in the form of public issuance to remain at VND 156 trillion at the end of May 2025, up 25% over the same period.

Data updated to June 17 on the FiinPro-X system on the corporate bond market shows that issuers have paid a total of VND67.3 trillion in principal and interest on corporate bonds since the beginning of 2025, equivalent to 23% of the cash flow payable from bonds in the whole year of 2025.

The expected cash flow to be paid from bonds (including principal and interest) is estimated at VND25 trillion in June and VND28.3 trillion in July. All bonds expected to mature in July 2025 come from the non-bank group, showing relatively large payment pressure.

In July 2025 alone, the total principal value of bonds due for payment of the non-bank group is estimated at VND 19.2 trillion, a sharp increase of 67% compared to VND 11.5 trillion in June. Real estate continues to account for an overwhelming proportion (62.8%) with about VND 12 trillion of bonds due in July, double the maturity scale in June.

Expected corporate bond payment cash flow in the non-bank group.

Some enterprises with large volumes of maturing bonds include Hoang Phu Vuong (VND4.7 trillion), Hoa Phu Thinh JSC (VND3.1 trillion), and Sovico Group (VND1.6 trillion). In which, Hoang Phu Vuong and Hoa Phu Thinh are two enterprises related to the Van Thinh Phat and Tan Hoang Minh groups.

Accumulated from the beginning of June to the end of 2025, the total value of corporate bonds due for payment of the Non-bank group is estimated at about 106.5 trillion VND, of which Real Estate accounts for 65% (equivalent to 68.9 trillion VND).

However, the pressure to pay bond interest in July has somewhat cooled down in the non-bank group, estimated at more than VND5.4 trillion, down 22% compared to the previous month.

Accumulated from the beginning of June to the end of 2025, the non-banking group is expected to need to pay about VND41.1 trillion in bond interest. Of which, Real Estate alone accounts for more than 53%, reflecting large cash flow pressure in the context of rapid maturity.

Source: https://baodautu.vn/doanh-nghiep-bat-dong-san-gap-doi-ap-luc-dao-han-trai-phieu-trong-thang-7-d311481.html