$448M bond payouts loom for property firms in January

By Dat Nguyen   January 9, 2023 | 08:02 pm PT
$448M bond payouts loom for property firms in January
An employee counts Vietnamese banknotes at a bank in Hanoi. Photo by VnExpress/Giang Huy
Property companies have to redeem bonds worth VND10.5 trillion ($447.76 million) that mature this month.

They account for 60% of all bonds maturing in January, according to the Vietnam Bond Market Association, while construction firms need to pay out VND5.9 trillion, or 34%.

Private bond issuance last year declined by 66% to VND244.56 trillion, while public issuance rose by 65% to VND10.6 trillion.

Companies prematurely redeemed VND210.57 trillion worth of their own bonds last year, up 46% from 2021.

Analysts expect businesses to face major burdens this year and next when VND700 trillion worth of bonds will mature.

Bonds have been one of the key channels for companies to raise capital in recent years, but investors’ confidence has been shaken following some high-profile arrests last year for fraud related to issuances.

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