Recently, Novaland has informed about continuing to complete the early repurchase of 15 bond packages issued since 2020 (NVL2020 bonds) with a total value of VND 5,110 billion.
Previously, on January 6, 2025, Novaland completed the early redemption of 5 NVL2020 bond packages with a total value of VND 1,550 billion.
Thus, up to now, Novaland has completed the early repurchase of 20 NVL2020 bond packages with a total value of VND 6,660 billion.
Novaland said it is arranging financial resources to complete the purchase of the remaining bond package as soon as possible.
It is known that these are 21 bond packages issued since 2020, with a term of 60 months (bond term extension has been approved), in which a part of these bonds are also overdue for interest payments and the entire principal and interest will be due in the period of June-August 2025.
In an effort to restructure to reduce debt and interest pressure, Novaland has discussed and reached consensus with bondholders of NVL2020 bonds to sell collateral through appropriate methods to pay bond principal and interest.
On that basis, Novaland Group has found a partner to transfer assets and pay debts to bondholders, according to the implementation plan from January 2025.
Another real estate company, Nam Long Investment Corporation (HoSE: NLG), also announced the completion of the early repurchase of 2 bonds with a total value of VND1,000 billion. These bonds mature in March 2029, but the company repurchased them 5 years ahead of schedule.
Several other businesses also focused on buying back bonds before maturity. Hai Phat Real Estate Investment and Trading Joint Stock Company (HoSE: HPX) also completed the purchase of all VND390 billion of bonds before maturity in December 2024, with no outstanding bonds.
Real estate companies An Gia (HoSE: AGG) and Phat Dat (HoSE: PDR) have also thoroughly implemented this, aiming to bring bond debt balance to 0.
Recently, it can be seen that many real estate businesses have tried very hard to reduce bond debt, even willing to roll over debt by increasing bank loans, issuing shares to raise money to reduce bond debt, in the context of difficulties in project implementation and selling housing products.
According to VIS Rating statistics, the number of newly arising late principal/interest payment organizations has decreased significantly in 2024; in the fourth quarter of 2024, there have been no new cases of late payment announcements.
However, there are still bonds that are overdue, in the process of being processed, have to be extended or are negotiating with bondholders to restructure debt. VIS Rating estimates that the total amount of corporate bonds that have been overdue to date is about more than VND190,000 billion.
This continues to be an issue that needs to be addressed. There will be businesses that cannot recover and are no longer able to repay their debts, causing losses to investors and bondholders of those bonds.
This has also affected investors’ sentiment and assets to some extent. However, the positive point is that investors have identified problematic bonds and have been able to isolate the bonds/issuers that are in crisis.
Dr. Nguyen Duy Phuong, Investment Director of DG Capital, expressed the view that the riskiest period of the corporate bond market has passed, especially when new legal regulations are applied, helping the market become more transparent and sustainable.
In addition, good economic growth will also lead to expectations of a recovery in business operations of enterprises, thereby helping to improve the asset quality of enterprises and providing a basis for investors to increase their confidence in the corporate bond market.
In particular, the forecast of a warming real estate market will help improve the debt repayment cash flow of many businesses.
