DNVN - A report by VIS Rating shows that the rate of delinquent corporate bonds decreased slightly at the end of August compared to the previous month, but in September the total value of maturing bonds reached VND 24.5 trillion, higher than the previous month's VND 18.1 trillion.
The rate of late payments decreased to 14.9%.
According to the August 2024 Corporate Bond Market Overview Report recently published by Vietnam Investment Credit Rating Joint Stock Company (Vis Rating), in August, one corporate bond with a total face value of VND 450 billion announced a delay in the first coupon interest payment. This bond was issued by Novaland Group in August 2020 with a 3-year maturity, and its maturity date was postponed by one year in July 2023. However, in July 2024, this bond was further extended until August 2025.
The total number of newly issued overdue bonds from the beginning of the year to the end of August 2024 was VND 12.7 trillion. The cumulative overdue rate at the end of August 2024 decreased slightly to 14.9% compared to 15.1% of the previous month. About 63% of the cumulative overdue bond value came from the residential real estate group, with a cumulative overdue rate of 31%.
Also in August, 13 delinquent bond issuers in the residential real estate, retail, and agriculture sectors repaid a total of VND 2.4 trillion in principal to bondholders. After partial payments, the remaining delinquent bond debt of this group of issuers is VND 8.5 trillion.
VIS Rating forecasts that, within the next 12 months, an estimated 18% of the 245 trillion VND in maturing bonds are at risk of defaulting on principal repayments.
The majority of the overdue principal payments on corporate bonds in August 2024 involved the Agricultural Products and Materials Import-Export Joint Stock Company (CAJIMEX). CAJIMEX issued bonds in 2020 with a maturity date of December 2026, but subsequently defaulted on the coupon interest payment for the first time in 2023. By August 2024, CAJIMEX had completed the repurchase of all bonds as agreed with the bondholders.
Of the 567 delinquent bonds issued since 2022, 63 have paid their principal and interest in full to bondholders, and 294 are in the process of restructuring. The recovery rate for these delinquent bonds increased to 20.8% at the end of August.
Corporate bonds that are about to mature carry high risk.
According to a report by VIS Rating, the total value of maturing bonds reached VND 24.5 trillion in September, higher than the previous month's VND 18.1 trillion. VIS Rating anticipates that among the bonds maturing in September 2024, VND 1.8 trillion is at risk of default on principal repayment, with the majority already having defaulted on interest payments previously.
Over the next 12 months, an estimated 18% of the 245 trillion VND in maturing bonds are at risk of defaulting on principal repayments. Of these, 76% of the value of high-risk bonds belongs to companies in the residential real estate and construction sectors.
Regarding new issuances, in August, the volume of new bond issuances increased to VND 57.7 trillion, up from VND 46.8 trillion in July. Commercial banks issued a total of VND 51.3 trillion, continuing to account for the majority of new issuances.
Of the bonds issued by banks in August 2024, 40% were subordinated bonds eligible for Tier 2 capital, issued by Vietnam Joint Stock Commercial Bank for Industry and Trade, Tien Phong Commercial Bank, Vietnam Bank for Agriculture and Rural Development, Loc Phat Commercial Bank, Ho Chi Minh City Development Commercial Bank, and Vietnam Investment and Development Bank.
These Tier 2 bonds have an average maturity of 8.1 years and interest rates ranging from 5.5% to 7.6% in the first year. Other bonds are unsecured bonds with a 3-year maturity and fixed interest rates ranging from 5.2% to 7.7%.
Of the total 272.7 trillion VND in new issuances since the beginning of the year, 23 public offerings accounted for 39.1 trillion VND.
Thu An
Source: https://doanhnghiepvn.vn/kinh-te/chung-khoan/trai-phieu-doanh-nghiep-thang-8-2024-ty-le-cham-tra-giam-nhung-sap-dao-han-co-rui-ro-cao/20240913043746902
Comment (0)