The corporate bond market at the end of 2024 is under great pressure from maturity and liquidity. Bonds maturing in December increased sharply with the maturity value at the highest level since the beginning of the year.
According to VIS Rating, the Vietnamese corporate bond market is entering a volatile period. Of the 51 bonds maturing in December 2024, 15 are at risk of late principal payments. Most of these bonds have previously been late in paying interest. 30% of bonds maturing this month are at risk of late principal payments, higher than the 20% rate last month.
In the next 12 months, there will be about 105 trillion VND of bonds maturing in the residential real estate group, accounting for 45% of the total value of bonds maturing. Of this, an estimated 21 trillion VND of bonds are at risk of late principal repayment.
This situation is not just a random phenomenon, but reflects the increasing financial pressure of businesses. VIS Rating emphasized that up to 88% of non-financial issuers in November 2024 had weak credit profiles, negative operating cash flow and low debt repayment capacity.
In a bright spot regarding the debt payment delay situation this year, VIS Rating said that there were 43 bonds with the first delay in principal/interest payment in 2024 with a total value of VND23.2 trillion. This figure has decreased significantly compared to 369 bonds with the first delay in principal/interest payment with a total value of VND144.3 trillion in 2023.
The residential real estate group accounts for 60% of the total delinquent bonds, while the energy group leads with a delinquent rate of up to 44%. This trend shows that difficulties will continue into 2025, when cash flow from business operations is not enough to offset debt pressure.
Mirae Asset noted that some bonds about to mature are likely to face payment risks or fall into a state of late payment in December 2024 belonging to the following issuers: Saigon Investment and Development Joint Stock Company (VND 6,575 billion); Cam Lam Investment Company Limited (VND 240 billion); Dai Phu Hoa Joint Stock Company (VND 3,560 billion); Phuc Hau Investment Company Limited (VND 400 billion); I.P.A Investment Group Joint Stock Company (HNX: IPA, VND 310 billion); Hoang Truong Tourism Real Estate Investment Company Limited (VND 1,400 billion); Vina2 Investment and Construction Joint Stock Company (VND 110 billion); Hoa Lam An Trading and Service Joint Stock Company (VND 700 billion); Ngoc Thien Global Group Joint Stock Company (VND 453 billion); Hai Phat Investment Joint Stock Company (VND 300 billion) ...
In addition, in December 2024, there are also many issuers with maturing bonds such as Golf Long Thanh, F88, Masan Consumer, Nha Ba Ria - Vung Tau, Sunbay Ninh Thuan, Sunrise Vietnam, BIDGroup... along with many maturing bonds of banks such as BVBank, Bac A Bank...
