The pressure to pay off corporate bonds, especially real estate companies, is always high and is increasing, especially when the bond maturity date comes next year.
According to FiinRatings statistics, the outstanding balance of corporate bonds (both principal and interest) due in 2024 is at VND315,000 billion and will peak at VND334,000 billion in 2025. For real estate bonds alone, the outstanding balance due in 2024 is currently at VND60,000 billion and is estimated at VND135,000 billion in 2025.
Therefore, businesses have stepped up the purchase of bonds before maturity, paying off debt to reduce the pressure of paying principal and interest on maturing bonds. It has been noted that in the corporate bond market recently, the purchase of bonds before maturity has been bustling.
On October 25, Hai Phat Investment Joint Stock Company (Hai Phat Invest, code: HPX) bought back VND 53.8 billion worth of bonds code HPXH2123008 before maturity. This bond lot was issued on October 28, 2021, with a term of 3 years, with a total mobilized value of VND 250 billion.
This is the third time Hai Phat Invest has bought back this bond code this year. At the end of August and the end of September, the company also bought back a total of VND55 billion. After the early buybacks, the remaining value of this bond lot is VND100 billion, maturing on October 28, 2024.
Thus, the above bond lot is due for payment on October 28, however, the enterprise has not yet announced information about the payment of the remaining value of this bond lot.
In November, Hai Phat Invest will have 2 more batches of bonds maturing. Of which, the HPXH2124009 bond lot has a total issuance value of 250 billion VND, the enterprise has bought back 67.5 billion VND before maturity, the remaining 182.5 billion VND of bonds will mature on November 25, 2024; the HPXH2124001 bond lot has a value of 650 billion VND, the enterprise has bought back a total of 585 billion VND before maturity, the remaining 65 billion VND will mature on November 5, 2024.
Since September 2022, Hai Phat Invest has not issued new bonds. If all bonds due in October and November are paid off, Hai Phat Invest will be debt-free, bringing the value of outstanding bonds to 0 VND.
Another real estate company, BB Sunrise Power Joint Stock Company, has just bought back VND 24.1 billion worth of bonds, code BBSP.H.20.23.001, ahead of schedule. This bond was issued on December 22, 2020, with a term of 5 years and a total value of VND 500 billion.
This is the fifth time BB Sunrise Power has bought back this bond code this year. In early July, the company bought back VND22.9 billion, the amount of bonds bought back in the following periods was insignificant, only a few tens of millions of VND. After 5 early buybacks, the total remaining value of the bond lot is VND452.8 billion, maturing on December 22, 2025.
Similarly, Tandoland JSC has just bought back 27.7 billion VND of three lots of bonds TDLCH2126002, TDLCH2226001 and TDLCH2126001 before maturity. The total issuance value of these three lots of bonds is 185 billion VND, the total remaining value of bonds after the buybacks is 148 billion VND, all maturing on October 15, 2026.
Notably, an industrial park real estate company, An Phat 1 High-Tech Industrial Park JSC, bought back all two lots of bonds AP1CH2227001 and AP1CH2126001 ahead of schedule with a total value of VND320 billion. Accordingly, An Phat 1 has fully paid off all two lots of issued bonds ahead of schedule and reduced the value of outstanding bonds to VND0.
Previously, on October 17, Dream City Villas Real Estate Trading Company Limited bought back the entire MRVCB2328001 bond lot ahead of schedule with a total value of VND 2,300 billion, which is also the final bondholder debt of this real estate company.
