Real estate businesses account for more than half of bonds maturing in 2023

DNHN - Bonds issued by real estate and construction companies comprised 145,000 billion VND or more than half of the total amount of maturing corporate bonds.

According to Rong Viet Securities (VDSCMarch )'s 2023 macro report, a large number of corporate bonds are due to mature in 2023. According to estimates, the total value of corporate bonds maturing in the year could reach 290 billion dollars. Peak maturation concentration for corporate bonds occurs between May and September 2023 and December 2023.

Notably, real estate and construction bonds accounted for 145,000 billion VND between May and September, as debt repayment pressure decreased. Thus, the amount of outstanding bonds maturing in this sector accounts for fifty percent of the total amount of corporate bonds maturing annually. During peak season, up to 85,000 billion, VND must be paid between May and September.

In the first two months of the year, up to VND 15,000 billion in pre-maturely repurchased bonds were purchased, a 56% increase over the same period in the previous year. This record cannot be compared to the total amount of VND 235,000 billion in pre-maturity bonds that will be redeemed in 2022, as the majority of the redemptions will occur in the second half of the year.

Despite a 56% increase in the number of corporate bonds repurchased in the first two months of the year, according to the Hanoi Stock Exchange, up to thirteen enterprises were late in paying the principal and interest on bonds with a total issuance value of 3,800 billion dongs. Up to sixty businesses have reported delinquent interest and principal payments, the majority of which are real estate companies.

P.V (t/h)