Ministry of Finance: Corporate bond maturity volume in 2024 will decrease compared to last year

DNHN - According to the Ministry of Finance, although the volume of corporate bond maturities in 2024 is expected to decrease compared to 2023, it will still be high, concentrated in sectors with payment risks such as real estate and renewable energy.

Information from the Ministry of Finance on April 22, in a report sent to some ministries and sectors on the corporate bond market in 2023 and 2024, the Ministry of Finance proposed that the Ministry of Construction continue to resolve difficulties and obstacles for the real estate market following Resolution No. 33/NQ-CP of the Government.

According to the Ministry of Finance, although the volume of corporate bond maturities in 2024 is expected to decrease compared to 2023, it will still be high, concentrated in sectors with payment risks such as real estate and renewable energy. It is estimated that approximately VND 35.8 trillion will have difficulty repaying corporate bond debts, accounting for nearly 36% of the volume of bonds maturing from real estate companies.

The Ministry of Finance assessed that the corporate bond market will have more favourable conditions, but the demand for capital mobilisation from the issuance of private corporate bonds will still depend on the ability to balance capital and the demand for business expansion of enterprises, and the ability to mobilise capital from other channels.

As of the end of 2023, the outstanding corporate bond debt was approximately VND 1 million billion, issued by 432 enterprises. Of which, the total value of bonds maturing in 2024 is VND 240 trillion, lower than the maturity volume in 2023 of VND 261.6 trillion.

The Ministry of Finance also assessed that bonds issued by credit institutions have low risk, as the issuance complies with the capital adequacy ratio in banking operations supervised by the State Bank and credit institutions with maturing bonds all operate profitably. For bonds of real estate enterprises, the outstanding bond debt is VND 351.4 trillion, accounting for 34.8% of the total outstanding debt, issued by 182 real estate enterprises.

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