On September 12, two real estate companies announced the successful mobilization of VND5,400 billion in bonds. Accordingly, Phat Dat Real Estate Investment and Development Company Limited has completed the issuance of PDACB2425001 bonds with a total volume of 34,900 bonds, equivalent to the mobilization value of VND3,490 billion. The bonds have a term of one year, which means they will mature on September 12, 2025, with a fixed interest rate of 12%/year.
At the end of 2023, Phat Dat spent nearly VND 459 billion to pay off all bond debt, bringing the outstanding bond debt to zero. After announcing the "clean" bond debt, this is the first bond issuance of this enterprise.
Also on September 12, another real estate company, Truong Loc Real Estate Investment and Development Company Limited, successfully raised VND1,910 billion in bonds, with a term of one year, maturing on September 12, 2025, with a fixed interest rate of 12%/year.
Truong Loc Real Estate is a "newbie" in the bond market, the company was established in March 2023, this is the first batch of bonds this company has issued since its establishment.
Another enterprise, Kinh Bac Urban Development Corporation - JSC (Code: KBC) has also successfully mobilized a bond lot of 1,000 billion VND. The bond lot has a term of 2 years, interest rate of 10.5%/year, maturing on August 28, 2026.
Since the beginning of the year, Becamex IDC Corporation has issued VND1,800 billion, with all bonds having a term of 3 years and maturing in 2027. Of which, the largest bond is VND800 billion.
Van Huong Investment and Tourism Joint Stock Company is also a name that continuously appears with new issuance and acquisition transactions continuously taking place in the market. In particular, in mid-August 2024, the enterprise completed the issuance of a bond lot coded DRGCH2427001 with a total issuance value of 1,396.2 billion VND. The bond lot has a term of 36 months, expected to mature on July 16, 2027, with an issuance interest rate of 10%/year.
These developments in the corporate bond market show that many real estate businesses have increased their share issuance to mobilize resources to restructure loans and supplement capital for project development.
