The investor of The Maris Vung Tau project recently announced the issuance of bonds to raise more than 1,700 billion VND. Regarding The Maris Vung Tau project, the investor took 10 years to complete the project's legal procedures and only started construction in 2018. However, immediately after successfully raising 1,735 billion VND in bonds, on December 3, 2024, the owner of this business transformed into Truong Phu Production Construction Trading Company Limited.
Becamex IDC has just successfully issued 1,080 billion VND worth of bonds with a term of 4 years and an interest rate of 10.7%/year. Before issuing the above bonds, Becamex IDC still had outstanding debt of more than 11,126 billion VND of bonds remaining from previous issuances. It is known that most of the capital collected from bond issuances was invested in project programs (more than 8,000 billion VND), more than 2,120 billion VND to restructure debts and more than 1,200 billion VND to increase operating capital.
Becamex IDC said that the company has a healthy financial situation and is capable of paying due debts as well as the ability to repay debts for bonds expected to be issued. With a gross profit from business operations of over 3,000 billion VND on average over the last 5 years (according to the Consolidated Financial Statement), the company is capable of paying the interest obligations due on all bonds. After-tax profit of 1,700 - 2,200 billion VND in the last 5 years shows that the accumulation to pay the principal debt of bonds is guaranteed.
VIS Ratings also assessed that the ability of real estate companies to access new sources of capital has improved. Many new real estate regulations issued recently will boost project development and sales in 2025 and beyond. As cash flows improve, the debt servicing capacity of real estate developers is expected to start improving from the weak level of 2023-2024.
Sharing at a recent investment conference, Mr. Le Quang Hung, Senior Director of Investment Analysis at Techcom Capital, said that the bond investment channel will develop well in 2025, especially when the market has experienced major fluctuations in the past period of 2023. At the same time, recently, new policies and new laws have issued regulations related to the bond market to increase transparency and protect investors. This is important for the bond market to develop sustainably. Currently, corporate bonds are also gradually regaining investors' confidence.
In 2024, the bond market will develop, but mainly from the banking sector, the real estate sector will not contribute much. However, recently, new laws and policies related to the market have contributed to opening up sustainable development.
"In the recent period, the market has shown positive signs, real estate has demand for newly issued projects, some issuers that previously had problems related to bonds have gradually reduced, the debt repayment structure is good and is regaining investor confidence," said Mr. Le Quang Hung.
