The corporate bond market has recently recorded many notable developments. In particular, many businesses have resolved their debts by selling assets to repay bonds, renegotiating maturity dates, and swapping bond debt...
The recent notable deal is BB Sunrise Power Joint Stock Company - an energy company selling the entire Victoria Sapa hotel to pay off bond debt.
Accordingly, BB Sunrise Power has just sent a report to the Hanoi Stock Exchange (HNX) regarding the handling of collateral assets to pay off bond debt. The company has consulted with bondholders and received approval.
The entire Victoria Sapa Hotel in Lao Cai Province owned by Victoria Sapa Hotel Company Limited has been approved for mortgage release and deregistration of secured transactions. After completing the procedures, the issuer and the guarantor sign a contract to transfer the hotel to a third party.
BB Sunrise Power said the proceeds from the asset transfer will be used to pay the principal and interest of the bonds. The transfer price, including value-added tax, was announced at about VND210 billion. However, the amount to pay for sales costs as well as other taxes, fees and charges is VND30 billion. Therefore, the remaining amount to pay the principal and interest of the bonds is VND180 billion.
BB Sunrise Power issued a bond lot worth VND500 billion at the end of 2020, with an interest rate of 10.3%/year. The bond lot initially had a term of 3 years, then was extended to 5 years, maturing on December 22, 2025. After 3 buybacks, the remaining value of the bond lot is VND477 billion.
BB Sunrise Power is a company chaired by Mr. Vu Quang Bao. Mr. Bao is also known as the General Director of Bitexco Group.
Previously, Bitexco announced that it would transfer 100% of its capital contribution at Saigon Glory, the investor of the Ben Thanh Quadrangle, to Hanoi Phuong Dong Real Estate Company Limited.
This transfer does not change Saigon Glory's obligations to the bondholders issued by the company and the resolutions passed by the bondholders. After completing the transfer transaction, the new owner, Phuong Dong Hanoi Real Estate, must re-mortgage the assets securing the capital contribution at Techcombank to secure the obligations of the bonds with codes from SGL-2020.01 to SGL-2020.10.
Faced with the pressure of repaying maturing bonds, bond extension agreements are also a way for businesses to extend and postpone debt repayment pressure.
Recently, BVB Joint Stock Company has announced information about changing the term and maturity date of bonds. BVB has been approved by bondholders of the BVBCH2123001 bond lot to extend the maturity date from September 30, 2024 to March 31, 2025. The bond lot has a total issuance value of VND 300 billion, after 7 repurchases, the remaining value is VND 135 billion.
In addition, a series of other enterprises also announced successful bond extension agreements such as TPI Investment LLC; Dai Thinh Phat Construction Investment Joint Stock Company; Kita Invest Joint Stock Company...
A report on the corporate bond market recently published by VIS Rating said that in September 2024, the total value of maturing bonds reached VND24,500 billion, VND18,100 billion higher than the previous month. In the next 12 months, it is estimated that about 18% of the VND245,000 billion of maturing bonds are at risk of late principal repayment.
