Fifty-four issuers report late repayment of bond principal, interest

A total of 54 issuers reported late repayments of bond principal and interest from September 16, 2022 to January 31, 2023, according to the Hanoi Stock Exchange (HNX).

The list, announced by the HNX this week, features big issuers like Quang Thuan Investment Corporation, Sunny World Corporation, An Dong Investment Group, and Van Truong Phat Investment and Construction Joint Stock Company.

The real estate sector features heavily on the list, with firms including APEC Land Hue JSC, Ha An Realty, Hung Vuong Developer, LDG Investment, Dat Xanh Mien Nam Investment and Services JSC, and Nam Land JSC.

Some energy developers are also present, including BCG Energy, Trungnam Solar Power Co., Ltd, and Ocean Renewable Energy JSC.

HNX also announced many more businesses reporting bond principal and interest repayment delays after January 31, 2023. Among those are Casablanca JSC, Seaside Homes Real Estate Investment and Development Co., Ltd, An Giang Import-Export Company, Lavida Invest, Nice Star Real Estate Investment and Development Co., Ltd, Fuji Nutri Food JSC, Gia Phu Real Estate Co., Ltd, and Novaland Group.

In particular, Novaland said that it could not arrange capital sources to pay for bond batches NVLH2224005 and NVLH2123009 with respective amounts of VND26.4 billion ($1.1 million) and VND53.2 billion ($2.23 million).

The housing developer said it had made great efforts to pay the interest on bond batch NVLH212309, issued on August 12, 2021 and maturing on February 12, 2023. It proposed that in the next two months, it will join bondholders in paying the bond principal in accordance with actual company cash flow.

“We propose extending the bond principal payment deadlines to a suitable time, or swapping the bond principal with real estate products being invested and developed by the company,” it stated.

According to the Vietnam Bond Market Association (VBMA), about VND289.819 trillion ($12.28 billion) of bonds will mature in 2023. The figure in the first month of the year was about VND17.5 trillion ($741.45 million), of which the real estate sector accounted for VND10.5 trillion (60%), and the construction industry VND5.9 trillion (34%).