Faced with maturity pressure in the corporate bond market , many businesses are actively promoting early bond buyback activities to restructure debt and reduce pressure on payment of principal and interest on mature bonds. .
Accordingly, IPA Investment Group Joint Stock Company (IPA) has just announced the early repurchase of part of the two bond codes IPAH2225001 and IPAH2124002 with a total repurchase value of 900 billion VND, the remaining bond value after repurchase is 800 billion VND. copper. These two batches of bonds are expected to mature in November 2024 and February 2025.
From the beginning of the year until now, IPA has had 5 pre-maturity bond buybacks of 3 bond codes, including the above 2 bond codes and IPAH2124003 with a total buyback value of 1,740 billion VND. After redemption, the remaining value of these 3 bond lots is 1,260 billion VND.
IPA's outstanding bond debt as of June 30, 2024 is at VND 6,775 billion, including VND 2,700 billion in due long-term bonds and VND 4,075 billion in long-term bonds. Of which, IPA's bonds are 5,851 billion VND, the remaining 924 billion VND are bonds of Bac Ha Energy Joint Stock Company (subsidiary of IPA). In the first 6 months of 2024, IPA must pay bond interest of 130 billion VND and bond issuance costs of 859 billion VND.
Trung Thuy - Da Nang Joint Stock Company has also just announced the early buyback of part of the bond code TDNCH2225001 with a buyback value of 1 billion VND. This is the 5th repurchase announcement of Trung Thuy - Da Nang this year. After 5 times, the business has bought back a total of more than 411 billion VND of these bonds.
According to records, Trung Thuy - Da Nang currently only circulates the above bond code. After the buybacks, the remaining bond value of the enterprise is 896.9 billion VND.
Similarly, An Viet Infrastructure Investment and Development Joint Stock Company also bought back 76.3 billion VND of bond code AVICH2124001 before maturity. This is the second repurchase of this bond code this year. After acquisition, the remaining value of the bond lot is 1.5 billion VND, this balance will mature on November 8, 2024.
Long Thanh Cement Joint Stock Company has just bought back 10.7 billion VND of bond code LTCCH2136001. From the beginning of the year until now, Long Thanh Cement has had 3 pre-mature repurchases of this bond code with a total value of 31.1 billion VND.
After redemption, the remaining value of this batch of bonds is 1,883.9 billion VND. This is also the only batch of bonds Long Thanh Cement is circulating with the maturity date still quite far away, until May 2036.
Notably, a real estate business, S-Homes Real Estate Investment and Business Joint Stock Company, has announced 19 pre-mature bond buybacks since the beginning of the year. The codes acquired include: SSHCH2123001, SSHCH2123002 with a total acquisition value of more than 520 billion VND. After acquisition, the remaining value of bond code SSHCH2123001 is 1,453 billion VND; The remaining value of bond code SSHCH2123002 is 159.2 billion VND.
By the end of 2023, S-Homes Real Estate's outstanding bond debt is at VND 2,139 billion, down 36% compared to 2022.
A series of other businesses such as Taseco Group Joint Stock Company, North Star Holdings Joint Stock Company, Saigon Glory Company Limited, Phu Tai Joint Stock Company, Nam Hong Hydropower Investment & Construction Joint Stock Company... are also actively promoting activities. Buying back bonds before maturity to restructure debt and reduce the debt burden of businesses.
According to data from the Vietnam Bond Association (VBMA), in July, businesses bought back 32,094 billion VND of bonds before maturity, an increase of 17% over the same period in 2023. In the rest of 2024, It is estimated that there will be about 121,854 billion VND of bonds due, of which the majority are real estate bonds with 51,603 billion VND, equivalent to 42%.
