Businesses buy back bonds at record high

(QNgTV) - According to statistics from S&I Ratings, the activity of buying back corporate bonds before maturity took place strongly in the second quarter with a value of more than VND96,000 billion - the highest quarterly level ever.

Illustration

In the first 6 months of the year, the total value of buybacks is estimated at VND123,000 billion (up 59% over the same period last year). According to S&I Ratings experts, this development reflects the debt restructuring efforts of issuers in general when the market has somewhat recovered and the interest rate level remains quite attractive in the first half of 2025.

In the context of more favorable credit conditions (credit increased by 9.9% in the first 6 months of 2025) and the average lending interest rate decreased by 60 points compared to the end of 2024, businesses tend to prioritize bank loans instead of issuing bonds, in order to optimize capital costs and simplify procedures.

This also helps explain the increasing trend of early buybacks to reduce corporate bond debt pressure.

Source: https://quangngaitv.vn/doanh-nghiep-mua-lai-trai-phieu-cao-ky-luc-6505333.html