Delays loom for $3.7 bln in Vietnam bond payment by year-end

Vietnamese companies are under debt repayment pressure as VND94.3 trillion ($3.7 billion) worth of bonds will mature over the rest of this year, with property developers accounting for more than half.

According to a Vietnam Bond Market Association (VBMA) report, real estate firms face repayments of VND48.4 trillion ($1.84 billion) in bonds, or 51.3% of the total. Nearly VND18 trillion ($683 million) worth of real estate bonds mature in August, the highest this year.

The biggest pressure falls in the final week of August, with Vincom Retail and Becamex IDC each owing VND2 trillion ($76 million), Vingroup (HoSE: VIC) with VND692 billion ($26.3 million), Hai Phat Invest with VND500 billion ($19 million), and Novaland (HoSE: NVL) with VND245 billion ($9.3 million).

Three others, linked to the troubled Van Thinh Phat Group, also face maturities this month: Quang Thuan Investment with VND5.8 trillion ($220 million), Thien Phuc International Hotel with VND3.2 trillion ($121.5 million), and Setra Corp with VND2 trillion ($76 million).

Another peak is due in December, with around VND13 trillion ($493 million) maturing, VBMA said.

Corporate fundraising has shown a sharp split, with capital flowing to stronger names. On August 15, Vinhomes (HoSE: VHM), the housing arm of Vingroup, raised VND7 trillion ($266 million) from a two-year private bond sale at an interest rate of 11%.

By contrast, Saigon Glory Co. Ltd., an affiliate of Van Thinh Phat, again missed repayment of VND2.21 billion ($84,000) on its SGL-2020.04 bonds used to finance a major Ho Chi Minh City project.

Gia Phu Real Estate Company Limited also defaulted on principal and interest payments of VND154 billion ($5.85 million) for its GPRCH2123001 batch.