The Great Real Estate Debt Shuffle

This week, 34 companies announced dividend closures. Of these, 24 companies paid dividends in cash, 5 paid stock dividends, 2 offered stock rewards, and 3 offered a mix of cash and stock dividends.

Repaying Old Debts

Nam Long Investment Joint Stock Company (stock code: NLG) approved the issuance of private placement bonds worth VND 660 billion, backed by assets.

The expected term for these bonds is 3 years, with an interest rate of 11% for the first two 6-month interest periods and 9.8% for the remaining periods. Interest is calculated every six months from the issuance date until maturity or early buyback.

Proceeds from the issuance will be used to repay the principal of the NLG2018001 bond, worth VND 660 billion, maturing on June 19. The issuance and capital utilization are expected in the third quarter of 2025.

Additionally, Nam Long Investment Joint Stock Company also approved the use of assets, including NLG’s shares in Nam Long VCD Joint Stock Company, NLG’s capital contribution to Paragon Dai Phuoc LLC, and other assets owned by NLG or third parties (if any) at the time of decision by authorized persons, as collateral for the bond issue.

The initial bond collateral comprises nearly 38.6 million shares of Nam Long VCD Joint Stock Company, valued at VND 990 billion, equivalent to VND 25,680 per share, according to the Appraisal Certificate dated April 17.

According to a report by VNDIRECT Securities Corporation, there will be an increase in pressure on private corporate bond maturities in 2025, especially in the real estate sector, with a value of over VND 130,000 billion. However, many businesses have faced challenges in repaying these maturing bonds.

Recently, Century Real Estate Joint Stock Company (Cen Land – stock code: CRE) extended the maturity of its CRE202001 bond, valued at VND 500 billion, from January 31 to October 13. The bond interest rate was also adjusted from a fixed rate of 12% per annum to 10.5%, calculated from February 1.

Signo Land Joint Stock Company obtained approval from the bondholders of SNLCH2123001, valued at over VND 1,034 billion, to extend the term from 33 months to 42 months from the issuance date. The bond maturity date has been postponed to June 30.

Several other real estate businesses with bonds maturing in 2025 include Hai Phat Investment Joint Stock Company (stock code: HPX) with HPXH2125007 bonds worth VND 500 billion maturing on August 25, Ha Long Bay Hotel Joint Stock Company with HLHCH2125001 bonds worth VND 250 billion maturing on August 2, and Hoi An Invest Joint Stock Company with two bond lots, HAJCH2225001 and HAJCH2225002, totaling VND 750 billion, maturing on April 29 and October 29, respectively.

A report by Vietnam Investment and Securities Rating Joint Stock Company (VIS Rating) stated that the total value of corporate bonds maturing this year is expected to reach VND 151,000 billion, with the highest pressure falling in the third quarter, when bond maturities could reach VND 63,000 billion, a 40% increase compared to the same period last year. The real estate sector continues to account for the largest proportion, followed by the banking group.

According to VIS Rating, in the first four months of 2025, many organizations repurchased and prepaid bonds, with a total value increasing by 97% over the same period. For businesses with weak cash flow, extending bond terms is a viable solution to avoid debt restructuring risks.

Improved bond market liquidity will support issuers in restructuring the debt of current bonds. Notably, 73% of the VND 13,200 billion of new bonds issued in the first four months were intended for debt restructuring.

About 60% of the bonds maturing in 2025 are in the residential real estate sector. Thanks to favorable market prospects and efficient access to capital, investors will be well-positioned to repay maturing bonds or reach maturity extension agreements with bondholders.

VIS Rating forecasts a 13% growth in bond issuance in 2025, matching the level of 2024. Real estate investors will continue to benefit from easy access to bank credit amid a favorable business environment in the industry.

First Dividend Payment

Vinaplast Joint Stock Company (stock code: VNP) has just approved a plan to pay cash dividends for 2024 at a rate of 20%. The ex-dividend date is June 17, and the expected payment date is July 18.

With over 19.4 million shares in circulation, VNP will spend about VND 39 billion on this dividend payout. This is the first time VNP has paid dividends since its listing on Upcom in 2015. The 2024 dividend rate is 3.4 times higher than the post-tax profit of 2024 and accounts for 59% of retained earnings. After paying dividends and allocating funds to various funds, VNP will have approximately VND 26 billion in retained earnings.

Construction Company No. 40 Joint Stock Company (stock code: L40) announced a dividend record date for a 200% stock dividend. The ex-dividend date is June 2.

Accordingly, shareholders owning 1 share will receive 2 new shares. With 3.6 million shares currently in circulation, L40 plans to issue an additional 7.2 million bonus shares. The newly issued shares will not be restricted from transfer. Following this issuance, L40’s charter capital will increase from VND 36 billion to VND 108 billion.

Song Hong Garment Joint Stock Company (stock code: MSH) announced that on June 3, it will finalize the list of shareholders for the issuance of shares to increase charter capital from owner equity (bonus shares). Specifically, Song Hong Garment plans to issue over 37.5 million bonus shares, equivalent to a ratio of 2:1, meaning that for every 2 shares held, shareholders will receive 1 new share. After the issuance, Song Hong Garment’s charter capital will increase from over VND 750 billion to VND 1,125 billion.

On June 5, the DXG Group will finalize the list of shareholders entitled to receive shares issued to increase charter capital from owner equity. Accordingly, DXG will issue over 148 million bonus shares to shareholders at a ratio of 100:17. The issuance value is VND 1,480 billion.