Many businesses are still late in paying bonds to investors. For example, Dua Fat Group Joint Stock Company (DFF) has just announced a resolution of bondholders allowing the company to extend the payment of principal and interest on bonds with an outstanding debt of VND111.9 billion that are overdue. Accordingly, bondholders agreed to let DFF pay a total of VND25.62 billion in principal and interest on bonds (including VND22.38 billion in principal and VND3.24 billion in bond interest) on March 1. The applicable interest rate is 11.75%. After March 1, DFF will only have to pay interest without having to pay the principal, but the overdue interest rate will increase to 17.625%/year.
From June 15, 2023 to July 14, 2023, DFF must pay both principal and interest at an interest rate of 17.625%. In case DFF fails to implement the committed payment schedule, the bondholder will handle the collateral assets of the DFFH2123001 bond.
Many businesses still buy back bonds before maturity
The situation of many enterprises being late in paying bonds is still happening like DFF. For example, at the end of February, Ho Chi Minh City Trading and Service Joint Stock Company (Setra) sent a document to the Hanoi Stock Exchange (HNX) to notify about the late payment of principal and interest on bonds. It is known that Setra has 20 bond codes with a total issuance value of 2,000 billion VND, with the same interest payment date on February 28. The total interest to be paid is more than 104 billion VND. However, Setra announced that it could not pay any money to bondholders because it could not arrange a payment source.
Or Hung Thinh Quy Nhon Entertainment Services Joint Stock Company has a bond lot due for interest payment with code HQNCH2124005, with a total issuance value of 1,600 billion VND. According to the plan, the company will pay interest on February 27 with an amount of nearly 45 billion VND. However, in reality, the company only paid interest with an amount of more than 22 billion VND and the interest. The reason given by the company is that it could not arrange the money source in time to pay due to the context of tight credit, the real estate transaction market is not favorable...
But on the other hand, businesses also buy back a lot of bonds. For example, Vinh Son - Song Hinh Hydropower Joint Stock Company (VSH) announced that it would buy back bonds issued from the first to the fifth installments of 2019 before maturity. Specifically, VSH will buy back 111 bonds with the code VSH_BOND_2019 with 5 issuances from 1 to 5 years. The total value of bonds bought back before maturity at par value is 111 billion VND. Previously, VSH announced that it had bought back 108 billion VND of bonds before maturity from February 28 to March 7.
According to the Vietnam Bond Market Association (VBMA), the total value of bonds bought back by businesses before maturity in February was VND5,940 billion, up 34% over the same period last year. Since the beginning of the year, the total value of bonds bought back by businesses has reached more than VND15,300 billion, up 43% over the same period in 2022.
In March, the total value of corporate bonds maturing was VND17,700 billion, more than 3 times higher than the value maturing in February. According to data from VNDirect Securities Company, the estimated value of corporate bonds maturing in 2023 is about VND252,000 billion, an increase of 64% compared to 2022. In which, the period of Q2 - Q3/2023 is assessed as quite challenging with nearly VND160,000 billion of bonds maturing.
The real estate business group accounts for the largest proportion with 43% of the total maturity value of individual bonds in 2023, equivalent to VND 107,700 billion. Followed by the finance - banking group with 31% of the maturity value proportion, equivalent to VND 77,600 billion (up 24% compared to 2022)...
Source: https://thanhnien.vn/trai-phieu-doanh-nghiep-noi-mua-truoc-han-noi-cham-thanh-toan-18523031216435743.htm
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