Businesses continue to buy back bonds before maturity

Faced with maturity pressure in the corporate bond market, a series of businesses are actively promoting early bond buyback activities to restructure debt and reduce the pressure of paying principal and interest on maturing bonds.

Accordingly, IPA Investment Group Corporation (IPA) has just announced the early repurchase of part of 2 bonds IPAH2225001 and IPAH2124002 with a total repurchase value of 900 billion VND, the remaining value of the bonds after repurchase is 800 billion VND. These 2 bonds are expected to mature in November 2024 and February 2025.

Since the beginning of the year, IPA has had 5 early bond buybacks of 3 bond codes, including the 2 above bond codes and IPAH2124003 with a total buyback value of VND 1,740 billion. After the buyback, the remaining value of these 3 bond lots is VND 1,260 billion.

IPA's outstanding bonds as of June 30, 2024 were VND6,775 billion, including VND2,700 billion of long-term bonds due for payment and VND4,075 billion of long-term bonds. Of which, IPA's bonds were VND5,851 billion, the remaining VND924 billion were bonds of Bac Ha Energy Joint Stock Company (a subsidiary of IPA). In the first 6 months of 2024, IPA had to pay VND130 billion in bond interest and VND859 billion in bond issuance costs.

Trung Thuy - Da Nang Joint Stock Company has just announced the early repurchase of a part of the bond code TDNCH2225001 with a repurchase value of 1 billion VND. This is the 5th repurchase announcement of Trung Thuy - Da Nang this year. After 5 rounds, the company has repurchased a total of more than 411 billion VND of this bond code.

According to records, Trung Thuy - Da Nang is currently only circulating the above bond code. After the repurchases, the remaining bond value of the enterprise is 896.9 billion VND.

Similarly, An Viet Infrastructure Investment and Development Joint Stock Company also bought back 76.3 billion VND of AVICH2124001 bond code before maturity. This is the second buyback of this bond code this year. After the buyback, the remaining value of the bond lot is 1.5 billion VND, this balance will mature on November 8, 2024.

Long Thanh Cement Joint Stock Company has just bought back 10.7 billion VND worth of bond code LTCCH2136001. Since the beginning of the year, Long Thanh Cement has bought back 3 times before maturity of this bond code with a total value of 31.1 billion VND.

After the buyback, the remaining value of this bond lot is 1,883.9 billion VND. This is also the only bond lot that Long Thanh Cement is currently circulating with a maturity date still quite far away, until May 2036.

Notably, a real estate company, S-Homes Real Estate Investment and Trading Joint Stock Company, has announced 19 early bond buybacks since the beginning of the year. The codes bought back include: SSHCH2123001, SSHCH2123002 with a total buyback value of more than VND520 billion. After the buyback, the remaining value of bond code SSHCH2123001 is VND1,453 billion; the remaining value of bond code SSHCH2123002 is VND159.2 billion.

By the end of 2023, S-Homes Real Estate's outstanding bonds will be VND 2,139 billion, down 36% compared to 2022.

A series of other enterprises such as Taseco Group Corporation, North Star Holdings Corporation, Saigon Glory Company Limited, Phu Tai Corporation, Nam Hong Hydropower Investment and Construction Corporation... are also actively promoting activities to buy back bonds before maturity to restructure debt and reduce the debt burden of enterprises.

According to data from the Vietnam Bond Association (VBMA), in July, businesses bought back VND32,094 billion of bonds before maturity, up 17% over the same period in 2023. In the remainder of 2024, it is estimated that about VND121,854 billion of bonds will mature, most of which are real estate bonds with VND51,603 billion, equivalent to 42%.

Source: https://laodong.vn/kinh-doanh/cac-doanh-nghiep-lien-tuc-mua-lai-trai-phieu-truoc-han-1382924.ldo