100 Vietnam bond issuers report late repayment of principal, interest in 11 months

Around 100 bond issuers in Vietnam have reported delays in repaying principal and interest worth VND192 trillion ($7.92 billion) this year through November 21.

This accounted for nearly 19% of total corporate bond debt in the market, with the lion’s share (70%) held by the real estate group, according to a MBBank Securities (MSB) report.

The total value of corporate bonds successfully issued in November (until 22) was over VND20 trillion ($825 million), down 32% compared to the previous month.

Most of the issuances during the month came from the finance and banking group, accounting for more than 48%. VietinBank took the lead in bond issuance value with VND3,542 billion ($146.1 million), including VND3,092 billion worth of bonds with a coupon rate of 6.45%-6.55% and VND450 billion with a rate of 7.1%, for terms of 8-10 years.

The highest coupon rate this month was 14%, recorded in the offering of VND1,495 billion ($61.7 million) by Anh Quan Consulting and Construction Co., Ltd.

"Notably, the corporate bond issuance coupon rates of the banking group tended to increase in November after many months of moving sideways. This sign showed that banks' deposit interest rates are difficult to go down further," the MBS report said.

It estimated the total value of corporate bonds issued so far this year at VND233 trillion ($9.61 billion), down 8% year-on-year. The average coupon rate in the past 11 months was 8.5%, higher than the average of 7.9% in 2022.

Since the beginning of the year, the banking group posted the highest issuance value at about VND109.6 trillion ($4.52 billion), down 18% year-on-year and accounting for 47% of the total value.

Top issuers in this group were Asia Commercial Bank (VND18.9 trillion), Techcombank (VND15.5 trillion) and VietinBank (VND12.9 trillion).

The real estate group came second with a total issuance value of VND73.1 trillion ($3.02 billion), up 10% year-on-year and accounting for 31% of total value.

Leading issuers were Capitaland Tower Company Ltd. (VND12.2 trillion), Hung Yen Urban Investment and Development Company Limited (VND7.2 trillion), and Vinhomes JSC (VND5 trillion).