The bond market is still showing some optimistic signals as real estate businesses are trying to negotiate and even try to buy back bond packages ahead of schedule.
According to information published to the Hanoi Stock Exchange, No Va Real Estate Investment Group Joint Stock Company (Novaland) is late in paying principal and interest for the NVLH2123009 bond lot, with a total amount of nearly 800 billion VND.
The scheduled payment date for principal and interest for this bond lot is February 12, 2025. The total amount to be paid is more than 803 billion VND, including 750 billion VND in principal and more than 53 billion VND in interest. However, Novaland was only able to pay nearly VND8 billion in principal. The remaining amount of more than 795 billion VND has not been paid with the reason of "not having arranged the source of money".
The enterprise is also negotiating with investors on paying the principal and interest for the above bond lot. In fact, this bond lot has expired since February 12, 2023, but Novaland has not been able to settle the debt.
Despite continued delay in payment, Novaland is showing positive signs when it announced that it had completed the buyback of 21 bond packages in 2020, with a total value of nearly 6.7 trillion VND.
Previously, on December 27, 2024, Novaland's Board of Directors approved the plan to buy back bonds before maturity for all 21 of these bond packages, with the total expected buyback volume calculated at face value of VND 7 trillion.
Khai Hoan Land Group has just announced the Resolution of the Board of Directors approving the Early repurchase Plan for bond package KHGH2123001 ( stock code issued by VSDC: KHG12101).
It is known that this bond package was issued on October 5, 2021, the payment date is April 5, 2025 for the type of non-convertible, without a certificate of rights, with collateral in assets. In this period, Khai Hoan Land will complete the early repurchase of 100% of the outstanding bonds with a total value of VND300 billion.
In 2024, the total value of early bond buybacks reached nearly VND184,000 billion, down 22% over the same period. According to VISRating, the rate of late-payment bond recraisal for industry groups has improved significantly compared to the beginning of 2024.
For the residential real estate group, this ratio has increased from 10% at the end of 2023 to more than 22.7% in December 2024 after negotiations with bondholders to restructure overdue debts or change payment methods in various ways including cash payment, exchange of assets or auction of collateral; thereby, improving the market-wide bond recovery rate to another 1% from 22.9% in November 2024.
According to Mirae Asset Vietnam's data, HNX has recorded more than 250 early repurchase transactions with a total value of VND 52,000 billion from December 2024 to February 10. The banking industry continues to dominate with more than 70% of the total value of early repurchase, approximately VND37,000 billion. Meanwhile, the real estate sector recorded significant early repurchases from two leading enterprises: Vinpearl (10,600 billion VND) and NVL (6,660 billion VND).
VIS Rating estimates that in 2025, there will be about VND224,000 billion of maturing bonds. Of which, about VND 110,000 billion matures are in the residential real estate industry. VIS Rating believes that about 17% of the value of bonds is at risk of late principal repayment; 94% of the value of this risky bond comes from the residential real estate group and tourism and resorts.
In the immediate future, a total of 117 bonds from 17 different issuers are expected to mature in February and March 2025, with a total face value of VND 16,500 billion. The maturity structure mainly focuses on real estate enterprises (11,800 billion VND), followed by manufacturing (VND3,500 billion), other sectors (VND656 billion), and trade and services (VND102 billion).
