Hung Thinh Land asks for deferment of 1,600 billion VND bond debt

Hung Thinh Land extended the payment date by 15 months for 6 bond lots with a total face value of VND 1,600 billion, moving the debt repayment pressure to November 2024.

Hung Thinh Land Joint Stock Company has just announced the postponement of the maturity date of 6 bonds with a total face value of 1,600 billion VND. These are bonds issued in 2020, of which 5 were originally due at the end of August and one at the end of October. After adjustment, all will mature at the end of November 2024.

This is not the first time the Hung Thinh ecosystem has negotiated to postpone the maturity date of bond lots. In September, businesses in this group postponed the maturity date by about 24 months for 7 lots, worth about 9,200 billion VND.

Before the extension, Hung Thinh Corporation and other enterprises in the ecosystem repeatedly announced information about the delay in paying principal and interest on bonds. The common reason is that the financial market and real estate trading market are not developing favorably, leading to enterprises not being able to arrange the funds in time to pay on time compared to the plan.

Recently, negotiations to extend the repayment period of bonds have been taking place vigorously in the context of businesses lacking capital and facing difficulties in business operations. According to the Vietnam Bond Market Association (VBMA), more than 60 issuers have successfully negotiated to extend the term of bonds and have reported to the Hanoi Stock Exchange (HNX) as of October 27. VNDirect estimates the total value of the above-mentioned extended corporate bonds to be about VND107,000 billion.

Correspondingly, the activity of buying back bonds before maturity has also slowed down. A recent report by MB Securities (MBS) shows that in November, the value of bonds bought back before maturity is estimated at more than 2,000 billion VND, down 82% compared to the previous month.

However, the bond extension agreement is not easy to implement. Therefore, the market still has many businesses that delay or postpone principal and interest payments. According to MBS, as of November 21, about 100 businesses have announced this. The analysis team estimates the total value of late payments at about VND192,000 billion, accounting for nearly 19% of outstanding corporate bonds in the whole market. Of which, the real estate industry continues to account for the largest proportion of about 70%.

Siddhartha

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