Real estate bond issuance is "warming up" again.
Data from credit rating agency FiinRatings shows that in April, the value of corporate bonds issued surged to VND 35,500 billion, an 80% increase compared to the same period in 2024. Notably, non-bank issuers made a comeback to the market after being absent in the first quarter of 2025, with a total issuance value of VND 13,200 billion, mainly from real estate and commercial service businesses. Meanwhile, the banking and securities sectors continued to maintain issuance activities with tranches of 1-3 years, aiming to supplement Tier 2 capital and margin lending capital.
Corporate bond repurchase activity in April 2025 reached VND 11,000 billion, an increase of 14.6% compared to the previous month, but a decrease of 14.6% compared to the same period last year.
According to Nguyen The Minh, Director of the Individual Customer Research and Development Division at Yuanta Securities Vietnam, real estate bonds reissued in April mainly come from companies with good liquidity, aiming to implement projects as the legal procedures for these projects are accelerated, and possibly to settle bonds maturing in the third quarter of 2025.
Previously, according to aggregated data from VNDirect Securities Joint Stock Company, the first quarter of 2025 saw 10 successful domestic corporate bond issuances, with a total issuance value of approximately VND 25,104 billion, a decrease of 84% compared to the fourth quarter of 2024 and a decrease of 12.8% compared to the same period last year. Of these, only 2 were private placements with a total issuance value of VND 2,000 billion, accounting for 8%; and 8 were public offerings with an issuance value of VND 23,104 billion, accounting for 92%.
According to expert Nguyen Ba Khuong (VNDirect Securities Joint Stock Company), in recent years, private corporate bond issuance activities have typically been quiet in the first quarter and gradually "warmed up" in subsequent quarters. In reality, the first quarter of each year is usually when the demand for capital from businesses is low, and it is also the quarter with the lowest credit growth of the year. Therefore, corporate bond issuance activities by businesses in general and by the banking sector in particular are usually low.
The good news is that, according to Vietnam Investment Credit Rating Joint Stock Company (VIS Rating), the situation regarding the handling of overdue debts has shown positive changes. In the first quarter of 2025, 17 issuers partially or fully repaid their overdue principal debt, totaling VND 8,081 billion, an 83% increase compared to the same period last year.
The pressure to meet maturity remains high.
According to data from the Vietnam Bond Market Association, an estimated 163,212 billion VND of bonds will mature in the remaining months of 2025, with the majority being real estate bonds at 86,444 billion VND, equivalent to 53%. Regarding the market outlook, expert Nguyen Ba Khuong believes that credit growth is likely to accelerate from the second quarter of 2025 until the end of the year, leading to increased capital mobilization needs for banks in the remaining quarters of 2025. Therefore, it is highly likely that banks will actively issue bonds again from the second quarter of 2025.
According to Mr. Nguyen The Minh, market developments depend heavily on the tariff policies between the US and Vietnam, as well as the macroeconomic situation. If the uncertainties are resolved, corporate bond issuance will increase after the second quarter of 2025. The demand for bond issuance will remain concentrated in the financial and real estate sectors, with real estate companies expected to issue large amounts of bonds to implement projects after legal obstacles are removed, as well as to meet liquidity needs, as the third quarter of 2025 is when the pressure of corporate bond maturity will peak.
According to S&I Ratings, the real estate sector accounts for half of the maturing bonds in the last three quarters of the year. In the third quarter of 2025 alone, the maturing volume of this group reached VND 57,500 billion. Financial pressure on real estate businesses will continue to be high in the coming period. Therefore, the value of bond issuance will also increase sharply in the last three quarters of the year.
Meanwhile, financial expert Nguyen Tri Hieu observes that market developments depend heavily on the tariff policies between the US and Vietnam. If the two sides reach an agreement to significantly reduce tariffs, it will have a positive impact on the bond market; conversely, the domestic economy will certainly be affected, thereby impacting the bond market as well. “The bond market needs more progress, especially in terms of transparency of issuers regarding their financial situation, plans for the reasonable, legal, and proper use of capital, as well as credit ratings for the issuer's bonds. This is the basis for investors to buy bonds,” the expert emphasized.
Source: https://hanoimoi.vn/phat-hanh-trai-phieu-doanh-nghiep-se-khoi-sac-trong-thoi-gian-toi-702628.html
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