Vietnam property developers raise over $2.3 bln through private bond placements in June

Vietnam’s real estate developers accelerated bond issuance via private placement in June, raising more than VND60.66 trillion ($2.31 billion) in a single month, the highest monthly issuance value recorded by the sector so far this year.

According to market data, 15 property companies successfully completed 21 privately placed bond issuances during the month, with the majority of proceeds coming from several large developers and legal entities linked to major real estate groups.

The bonds carried a weighted average coupon rate of around 11.27% per year and an average maturity of 29.7 months, reflecting the relatively high cost of capital for real estate companies amid ongoing funding needs.

According to market data, 15 property companies successfully completed 21 privately placed bond issuances during the month, with the majority of proceeds coming from several large developers and legal entities linked to major real estate groups.

The bonds carried a weighted average coupon rate of around 11.27% per year and an average maturity of 29.7 months, reflecting the relatively high cost of capital for real estate companies amid ongoing funding needs.

Issuance activity was highly concentrated among a few major players. Leading the market was Vinhomes, which issued five bond tranches worth a combined VND22 trillion ($837.6 million), accounting for 36.3% of total issuance value.

Hung Phat Invest Hanoi Co., Ltd. ranked second, issuing two packages worth a total of VND9.3 trillion ($353.8 million), or 15.3%. Hung Long Real Estate Development JSC and ParkLand 53 Co., Ltd. each raised VND7 trillion ($266.3 million), representing 11.5% apiece.

Hung Phat Invest Hanoi, Hung Long Real Estate Development, and ParkLand 53 are legal entities associated with Masterise Group. Together, the three companies raised VND23.3 trillion ($887 million), accounting for 38.4% of the total bond issuance value by real estate companies in June.

Coupon rates also varied significantly among issuers. Hung Phat Invest Hanoi, Hung Long Real Estate Development, ParkLand 53, Starbay Hanoi Investment Co., Ltd., and Thang Long Co., Ltd. issued bonds with rates ranging from 10% to 10.6% per year, while Vinhomes and Vinpearl offered higher rates of 12% to 12.5% per year.

The difference may reflect the characteristics of each issuance as well as the financial structures behind the issuers. The relatively lower rates offered by Hung Phat Invest Hanoi, Hung Long Real Estate Development, and ParkLand 53 are believed to be linked to their relationships within the Masterise Group-Techcombank ecosystem, while Starbay Hanoi has connections with the MIK Group-VPBank network. Thang Long Co., Ltd., meanwhile, is a member of Eurowindow Holding.

The structure of bond transactions may also have influenced funding costs. Special purpose vehicles (SPVs) may benefit from collateral arrangements or guarantee mechanisms, helping reduce coupon rates. By contrast, the higher rates offered by Vinhomes and Vinpearl may better reflect the cost of securing medium- and long-term funding, as most of their bond maturities range from 24 to 60 months, longer than many other issuances in the market.

By maturity, bonds with terms of 13-36 months accounted for the largest portion of issuance, totaling VND26.91 trillion ($1.02 billion), or about 44% of total issuance value. Bonds with maturities of up to 12 months totaled VND19 trillion ($722.7 million), while those with terms of 37-48 months reached VND4.14 trillion ($157.7 million). Issuances with maturities exceeding 48 months amounted to more than VND10.6 trillion ($403.9 million).

The maturity structure indicates that property developers continue to favor medium-term fundraising strategies to support capital restructuring, manage cash flows, and meet financial obligations in the coming years.

The June bond market performance highlights that capital remains concentrated among a small number of major developers and groups of companies operating within interconnected business ecosystems. With prevailing coupon rates ranging from 10% to 12.5% per year, financing costs in the real estate sector remain elevated.

Meanwhile, the successful completion of multiple bond issuances within a short period indicates that developers are adopting more flexible approaches to restructuring funding sources and meeting financing requirements at different stages.