According to DNVN - Vis Ratings estimates that in August 2024, approximately VND 7.3 trillion out of VND 18.6 trillion in maturing high-risk bonds will default on principal repayment, an increase compared to the previous month due to the maturing volume being three times higher than in July.
According to the Corporate Bond Market Report recently published by Vietnam Investment Credit Rating Joint Stock Company (Vis Ratings), in July 2024, the volume of new bond issuance was VND 42.8 trillion, lower than the VND 82.4 trillion recorded in the previous month.
Of the bonds issued by the banking group in July 2024, 55% were subordinated debt bonds issued by Military Commercial Bank, Ho Chi Minh City Development Bank, Nam A Commercial Bank, and Vietnam Investment and Development Bank, with an average maturity of 7.1 years and interest rates ranging from 5.9% to 7.5% in the first year, floating in subsequent years with a spread of 1.2% to 28% compared to the reference rate.
Other preferred debt bonds issued by other banks have a 3-year maturity with a fixed interest rate for the entire term ranging from 4.6% to 5.5%.
In the first half of 2024, the volume of new bond issuances reached VND 202.4 trillion, of which 70% were issued by the banking sector.
Vis Ratings estimates that in August 2024, approximately VND 7.3 trillion out of VND 18.6 trillion in maturing bonds were at high risk of defaulting on principal repayments.
Regarding high-risk bonds nearing maturity, Vis Ratings estimates that out of the 18.6 trillion VND in bonds maturing in July 2024, approximately 7.3 trillion VND are high-risk bonds that will default on principal repayment.
Over the next 12 months, approximately 20% of the 259 trillion VND in maturing bonds are high-risk bonds with a high risk of default on principal repayment.
Meanwhile, the value of high-risk bonds maturing in August 2024 was higher than in July 2024. Specifically, in August 2024, Vis Ratings estimated that approximately VND 7.3 trillion out of VND 18.6 trillion of high-risk bonds maturing would default on principal repayment, mainly from the residential real estate and energy sectors. The increase of VND 7.3 trillion compared to the previous month is due to the fact that the amount maturing in August 2024 was three times higher than in the preceding month.
According to the same credit rating agency, among the high-risk bonds maturing in August 2024, 4.3 trillion VND were issued by companies in the construction and residential real estate sectors.
Of these, Nova Land, Hung Thinh Land, and Dai Thinh Phat are the issuers that have delayed repayment of many bonds since 2023. The remaining bonds were issued by a company in the service sector. As of the reporting date, this company has not yet published its 2023 financial data as required on the Hanoi Stock Exchange's portal.
Regarding newly arising principal/interest arrears, according to Vis Ratings data, the total value of newly arising delinquent bonds from the beginning of the year to date is VND 12.2 trillion. The total value of first-time delinquent bonds in July 2024 was VND 1.24 trillion, lower than in June 2024 (VND 2.2 trillion).
In July 2024, five bonds issued by Sunrise Vietnam Investment and Construction Joint Stock Company (Sunrise), Big Gain Investment Company Limited, and Song Han Sun Company Limited were declared overdue for the first time, with a total outstanding corporate bond value of VND 1.24 trillion, lower than the previous month. Among them, Sunrise and Song Han Sun were the two companies that violated the bond payment deadline for the first time.
Specifically, Big Gain Investment Co., Ltd. is late in repaying the principal of its bonds, amounting to 438 billion VND, because it only repaid 562 billion VND out of a total of 1,000 billion VND in bonds due on July 30, 2024.
Sunrise Vietnam Investment and Construction Joint Stock Company defaulted on its first payment of both principal and interest due on July 15, 2024. Subsequently, on August 1, 2024, the bondholders approved an extension of the maturity date by another two years, to July 15, 2026.
Song Han Sun Co., Ltd. was late in repaying the principal debt of VND 300 billion on July 4, 2024, but subsequently repaid the entire amount on August 1, 2024, and currently has no outstanding bond debt.
Thu An
Source: https://doanhnghiepvn.vn/kinh-te/tai-chinh-ngan-hang/tang-so-doanh-nghiep-co-nguy-co-cham-tra-trai-phieu-trong-thang-8-2024/20240815035937320
