New recruits from the real estate group appear
The corporate bond market is recording new positive developments. Especially in September 2024 - the first month since October 2021, the market did not record any new cases of late payment. Meanwhile, non-financial issuers are gradually returning to the market with many "newcomers" calling for capital through corporate bonds for the first time such as: Saigon House Real Estate Development Company Limited; Ky Son Green Pearl Island Company Limited; Phat Dat Real Estate Investment and Development Company Limited; Truong Loc Real Estate Investment and Development Company Limited...
The banking group continues to be a bright spot, with many banks leading the issuance volume in the entire market such as: Techcombank, HDBANK, Orient Commercial Joint Stock Bank (OCB), Asia Commercial Joint Stock Bank (ACB)... With the newly issued bond volume of tens of thousands of billions of VND.
This industry group is currently the main "player" in the market when new issuance activities are promoted to mobilize capital, ensure capital safety indicators, restructure capital sources with appropriate costs to be ready for lending.
According to data from VNDirect, in the third quarter of 2024, the total issuance value of banks reached VND119,307 billion, accounting for 81% of the total issuance value of the entire market. The issuance activities of the real estate group also improved with the total value of individual corporate bonds issued in the third quarter of 2024 reaching VND20,895 billion, accounting for 14.2% of the total issuance value, up 41.8% compared to the previous quarter, but still 40.2% lower than the same period last year.
On the other hand, both banks and real estate are actively buying back bonds. In the third quarter of 2024, the banking group increased the purchase of bonds with remaining maturity of less than 1 year. Of which, OCB bought back 11,700 billion VND; BIDV Bank bought back 10,250 billion VND; Techcombank bought back more than 9,000 billion VND; VPbank bought back 4,500 billion VND...
Make an effort to not be late in paying
Notably, some issuers have made efforts to repay debts, focusing on large enterprises and real estate investors. In September, Saigon Glory Company Limited (Saigon Glory) repaid VND448 billion in principal to bondholders. Since the beginning of this year, Saigon Glory has repaid VND1,341 billion. After this payment, Saigon Glory's outstanding bond principal is VND8,700 billion.
Along with efforts to repay debts, negotiations to extend bond terms between issuers and bondholders are still taking place actively, with hundreds of issuers reaching agreements to extend bond terms with bondholders. The total value of bonds with extended terms is more than VND 156,000 billion. Of which, the total value of bonds with maturity in 2024 that have been extended is more than VND 58,700 billion, accounting for 37.6% of the total value of bonds with extended terms, mostly real estate bonds.
Issuers have reached agreements to extend the term of bonds with large value such as: Hoa Dong 2 Wind Power Company Limited has reached an agreement to extend 9 bond lots with a total value of about 1,900 billion VND, with an extension period of 24 months; TPI Investment Company Limited has reached an agreement to extend 1 bond lot with a value of about 1,000 billion VND, with an extension period of 24 months; Dai Thinh Phat Investment and Construction Joint Stock Company has reached an agreement to extend 2 bond lots with a total value of nearly 1,000 billion VND, with an extension period of 12 months...
"In the fourth quarter of 2024, we estimate that more than VND40,000 billion of outstanding bonds of the banking group will change from remaining maturity from over 1 year to under 1 year. Therefore, it is likely that in the fourth quarter of 2024, the banking group will continue to increase the issuance of bonds with longer maturities to replace and buy back these bonds that are about to mature," said Mr. Nguyen Ba Khuong, an analyst at VNDirect.
