In a recent announcement, Nova Saigon Royal Real Estate Investment Company Limited said it could not close the bond lot NSRCH2223001 worth VND1,000 billion issued from 2022.
Accordingly, of nearly VND936 billion in principal payables on June 17, Nova Saigon Royal was only able to pay nearly VND5 billion. The company also could not pay more than 51 billion VND in interest. The reason given is that Nova Saigon Royal has not yet arranged a funding source and is still negotiating with investors.
NSRCH2223001 is the only outstanding bond lot of this company. The collateral is 21.8 million shares of No Va Real Estate Investment Group Joint Stock Company (Novaland) and Novaland's payment guarantee commitment. In fact, the bond lot matures from September 2023, but the company has not been able to close on time and has been extended to the present.
Regarding business results, Nova Saigon Royal recorded after-tax profit in 2024 of nearly VND265 billion, down more than 18% compared to the previous year. Therefore, by the end of the year, the company's united tax profit reached more than 1,076 billion VND. Total outstanding loans are at VND 1,411 billion. Of which, outstanding bonds as of the end of the term were nearly VND946 billion, down about VND29 billion compared to the beginning of the year. The remaining payables are another VND465 billion. The enterprise did not incur any bank loan debt.
Similarly, BNP Global Real Estate Joint Stock Company also said that it could not close the bond lot TTPCH2123002 worth VND 2,100 billion on June 4. BNP Global cannot repay the outstanding principal of more than VND 1,200 billion of the bond lot. The reason given is that the company has not yet arranged a source of money and is continuing to negotiate with investors. On the other hand, on June 5, BNP Global had to pay a portion of the bond interest with an amount of nearly 6.4 billion VND.
According to the original plan, the bonds matured from June 2023 but have not yet been fully paid. In 2024, BNP Global paid nearly VND694 billion to reduce principal to VND1,200 billion as above.
The pressure to maturity of corporate bonds is reaching its peak, with about more than VND 146,000 billion to be paid from now until the end of the year. In the context of the approaching pressure to maturity of corporate bonds, a series of enterprises, especially in the real estate sector, are actively negotiating with bondholders to extend the term.
According to many financial institutions, bond maturity pressure may increase again from August 2025 and remain high until the end of 2026. The peak period of bond maturity is expected to be in December 2025, May - June 2026 and December 2026, coming from large issuance volumes in the second half of 2021 and the first half of 2022.
According to calculations, these months recorded maturity values (excluding early repurchase) exceeding VND40,000 billion, focusing on large issuers in the banking and real estate groups.
The VIS Ratings report stated that for businesses with weak cash flow, extending bond maturities is a feasible solution to avoid having to restructure debt. Up to 73% of the VND13,200 billion of newly issued corporate bonds in the first 4 months of the year have the purpose of using capital to restructure debt.
The operating cash flow at many bond issuers, especially in the real estate group, has not shown clear signs of improvement. The real estate group still has difficulty accessing new credit and refinancing through bond issuance channels due to legal problems and underlying cash flow, causing the maturity ratio to not decrease much in the 2025 - 2026 period.
In that context, the corporate bond market still faces liquidity risks in the second half of 2025, if the ability to rotate cash flow does not improve.
