Real Estate Companies “Race” to Buy Back Bonds Before Maturity

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The Vietnamese Bond Market Association (VBMA) reported in its March 2024 bond market update that, as of the information release date on March 29, 2024, there were 7 corporate bond issuances totaling VND 8,745 billion. Among them, Vinhomes JSC issued 2 tranches of 3-year bonds with a total value of VND 4,000 billion; Hai Dang Real Estate Investment and Development Limited Liability Company issued 2 tranches of 1.5-year and 3-year bonds with a total value of VND 2,500 billion; and Viet An Investment and Development Trading Company Limited issued a 2-year bond worth VND 1,250 billion.

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Since the beginning of the year, the total value of corporate bond issuances has reached VND 15,710 billion. There were 2 public issuances worth VND 2,650 billion (accounting for 16.9% of the total value of issuances) and 14 private issuances worth VND 13,060 billion (accounting for 83.1% of the total).

On the other hand, according to VBMA data compiled from the Hanoi Stock Exchange (HNX), companies have bought back VND 8,031 billion worth of bonds in March. The total value of bonds repurchased before maturity since the beginning of the year reached VND 21,834 billion, a 31.6% decline compared to the same period in 2023. Real estate companies led the way, accounting for 47.9% of the total value of early bond repurchases (around VND 10,468 billion).

Regarding unusual information disclosures, 7 companies delayed principal and interest payments in the month, with a total value of about VND 4,851 billion (including interest and remaining bond balance). Additionally, 27 bond codes had their repayment, maturity, or early bond repurchase dates extended.

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In the secondary market, the total value of individual corporate bond transactions in March reached VND 91,120 billion, an increase of 51.8% compared to February 2024. Most of the most actively traded bonds were issued by commercial banks.

According to VBMA, for the remainder of 2024, the total value of bonds maturing will be VND 211,084 billion. 37% of the bonds nearing maturity belong to the real estate sector, with approximately VND 78,585 billion, followed by the banking sector with nearly VND 53,847 billion (accounting for 26%).

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