It is noted that in the current corporate bond market , the activity of buying back bonds before maturity by enterprises is still continuously taking place. Compared to the new issuance activities that mainly take place in the banking group, financial institutions, and securities, enterprises buying back bonds before maturity takes place in most industry groups.
Typically, on September 9, Orient Commercial Joint Stock Bank (OCB) announced the early repurchase of 2 bond lots with a total repurchase value of up to VND 2,000 billion. These 2 bond lots were issued in 2022, expected to mature at the end of August 2025. Similarly, Vietnam Prosperity Joint Stock Commercial Bank (VPBank) and Military Commercial Joint Stock Bank (MB) each bought back VND 500 billion ahead of schedule.
KN Cam Ranh Company Limited has also just bought back a part of the KNCCH2126001 bond lot ahead of schedule, with a purchase value of VND280 billion. According to the announcement, the company must pay off the entire bond lot on August 31, 2028.
The most active name in the early bond buyback activity is Saigon Glory Company Limited with 95 early buybacks. Although the buyback value of each round is quite low compared to the total outstanding bonds of the enterprise, these moves show that Saigon Glory is very active in debt restructuring activities.
Although businesses' early bond repurchase activities continue to take place, the repurchase value on the market has decreased sharply.
According to data from the Vietnam Bond Market Association (VBMA), in August, businesses bought back VND11,023 billion of bonds before maturity, down 45% compared to the same period in 2023. In the rest of 2024, it is estimated that about VND105,945 billion of bonds will mature, most of which are real estate bonds with VND43,352 billion, equivalent to 40.9%.
Meanwhile, businesses continued to delay paying principal and interest. In August, there were 10 bond codes with delayed interest payments with a total value of VND 197.5 billion and 1 bond code with delayed principal payments of VND 998 billion.
