A series of businesses are repeatedly failing to repay bonds when they become due.

The corporate bond market continues to see a series of companies announcing delays in repaying bonds when they become due. (Illustration: Luc Giang)

Fuji Nutri Food Joint Stock Company is late in repaying the principal and interest on bond code FNFCH2223001, with interest payable amounting to VND 133.5 billion and principal payable amounting to VND 998 billion. Thus, the total amount of principal and interest overdue by the company is VND 1,131.5 billion.

According to the announcement, the planned payment date was August 12, 2024. However, Fuji Nutri Food stated that the company had not yet secured the necessary funds, so the expected payment date has been postponed to August 21, 2024. To date, the company has not released any information regarding the payment of principal and interest on this bond.

This is not the first time Fuji Nutri Food has been late in paying its bonds. In 2023, the company announced four instances of delayed interest payments on bonds due, with interest amounts ranging from 20 billion to over 25 billion VND.

Previously, in August 2023, Fuji Nutri Food extended the aforementioned bond issue for another year, with the original 12-month term adjusted to 24 months.

According to data from the Hanoi Stock Exchange (HNX), Fuji Nutri Food only issued two tranches of bonds, FNFCH2223001 and FNFCH2124001, with a total value of VND 1,720 billion. Both bonds matured on August 12, 2024 and March 18, 2024, respectively. However, the company was unable to make payments on time and repeatedly announced delays in paying the principal and interest on both bonds.

Fuji Nutri Food has been consistently late in repaying its bonds amidst poor business performance. In 2023, the company reported a profit of less than 2 billion VND, while in 2022 it incurred a loss of over 8 billion VND.

Regarding its financial situation, as of the end of 2023, Fuji Nutri Food's equity was VND 643 billion, showing negligible change compared to the previous year. The debt-to-equity ratio was 2.869 times, corresponding to a total debt of VND 1,845 billion, the majority of which was bond debt, at VND 1,718 billion.

Similarly, Man Sugar Joint Stock Company only issued a single bond issue with the code DMBond2017, a 7-year term maturing on November 20, 2024, with a total issuance value of 200 billion VND, an interest rate of 10.75% per year, and interest paid every three months.

However, in the first half of 2024, Duong Man failed to pay two installments of interest on the bond issue, totaling over 12.6 billion VND, because the company had not yet arranged the funds for payment.

Previously, in 2023, Duong Man had four instances of unpaid interest and one instance of unpaid principal on its bonds. The total amount of interest due was over 25 billion VND and the total principal was 100 billion VND.

In the first half of 2024, Man Sugar Company incurred a net loss of over 20 billion VND, compared to a loss of nearly 51 billion VND in the same period of the previous year. Cumulatively from 2020 to 2023, the company recorded a loss of up to 228 billion VND.

Continuous losses also caused the company's equity to decrease by 27% to just over 53 billion VND. The debt-to-equity ratio increased from 15.18 to 21.08 times, corresponding to total liabilities at the end of Q2/2024 reaching 1,130 billion VND. Of this, 200 billion VND was bond debt.

Novaland Investment Group Joint Stock Company ( Novaland - HoSE: NVL) has also just announced a delay in paying 38.2 billion VND in interest on three bond issues: NVL2020-02-450 (24.7 billion VND), NVL2020-02-100 (5.5 billion VND), and NVL2020-02-150 (8.3 billion VND). The reason given is that the company is arranging funds to make the payment.

These bonds were issued in 2020, with a 4-year term, and are expected to mature in 2024. Recently, Novaland requested an extension for 17 bond issues from 2024, extending the term from 4 years to 5 years. After the extension, the bond maturity date will change from 2024 to 2025. However, only 8 out of 17 bond issues were approved for extension, and the aforementioned 3 bond issues were not included in this list.

Source: https://laodong.vn/kinh-doanh/loat-doanh-nghiep-lien-tuc-cham-tra-no-trai-phieu-den-han-1384160.ldo