Hung Thinh Land has extended the settlement date by 15 months for 6 tranches of bonds with a total face value of VND 1,600 billion, shifting the debt repayment pressure to November 2024.
Hung Thinh Land Joint Stock Company has just announced the postponement of the maturity date for 6 tranches of bonds with a total face value of VND 1,600 billion. These bonds were issued in 2020, with 5 tranches initially maturing at the end of August and one at the end of October. After the adjustment, all will mature at the end of November 2024.
This is not the first time the Hung Thinh ecosystem has negotiated to postpone the settlement deadline for bond tranches. In September, companies in this group postponed the maturity date by approximately 24 months for 7 tranches, worth about 9,200 billion VND.
Prior to the extension, Hung Thinh Group and other businesses within its ecosystem repeatedly announced delays in principal and interest payments on bonds. The common reason cited was unfavorable developments in the financial and real estate markets, leading to businesses being unable to secure the necessary funds in time to make payments as planned.
Recently, negotiations to extend bond repayment periods have remained active amidst capital shortages and business difficulties faced by enterprises. According to the Vietnam Bond Market Association (VBMA), more than 60 issuers have successfully reached agreements to extend bond maturities and reported this to the Hanoi Stock Exchange (HNX) as of October 27th. VNDirect estimates the total value of corporate bonds extended as of this date to be approximately VND 107,000 billion.
Accordingly, early bond repurchase activities have also slowed down. A recent report by MB Securities (MBS) shows that in November, the value of bonds repurchased early was estimated at over 2,000 billion VND, a decrease of 82% compared to the previous month.
However, negotiating bond extensions is not easy. Therefore, the market still sees many businesses delaying or postponing principal and interest payments. According to MBS, as of November 21st, approximately 100 businesses had announced this. The analysis team estimates the total value of delayed payments at around VND 192,000 billion, accounting for nearly 19% of the total outstanding corporate bonds in the market. Of this, the real estate sector continues to account for the largest share, approximately 70%.
Tat Dat
Source link
Comment (0)