The Ministry of Finance recently reported on the private corporate bond market in 2023 and 2024 to the Government.
According to the Ministry of Finance, 88 enterprises issued private corporate bonds in 2023, with a volume of nearly 297 trillion VND, a 12% decrease compared to 2022. Credit institutions issued 167 trillion VND (accounting for 56.3% of the issuance volume), real estate companies issued nearly 88 trillion VND (29.6%), and companies in other sectors issued 42 trillion VND (14.1%).
Bonds issued by credit institutions are entirely unsecured, while 97.7% of bonds issued by real estate companies are secured.
As of the end of 2023, the total outstanding balance of private corporate bonds was approximately 1 quadrillion VND, issued by 432 enterprises, accounting for 9.9% of GDP and 7.4% of the total outstanding credit balance of the economy.
In addition to issuing corporate bonds to raise capital, enterprises also repurchased bonds early in 2023, with a volume of 248.2 trillion VND. And from the beginning of the year to March 22, 2024, enterprises continued to repurchase bonds early for 17.6 trillion VND.
Accordingly, credit institutions repurchased 126 trillion VND early, real estate enterprises repurchased 55.9 trillion VND early, and other sectors repurchased 66.3 trillion VND early.
According to the Ministry of Finance, in 2023, 139 enterprises delayed payment of principal and interest on bonds with a total value of approximately 83.6 trillion VND, mainly concentrated in the real estate sector with 50.7%, construction with 4.7%, trade and services with 21.4%, energy production with 5%, and enterprises in other sectors with 18.3%.
Out of these 139 enterprises, 33 have completed the payment of principal and interest (delayed by 1-30 days) with a volume of approximately 5.7 trillion VND, and 38 enterprises have negotiated with investors with a volume of approximately 26.1 trillion VND.
Regarding the payment of principal and interest of corporate bonds of 24 enterprises related to Van Thinh Phat Group, according to the Central Inspection Committee: In 2023, the volume of bonds maturing of these enterprises was 51.2 trillion VND, of which the principal value has been paid and repurchased early was 32.4 trillion VND; the outstanding balance as of the end of 2023 was 52.5 trillion VND.
