REAL ESTATE BOND MARKET REBOUNDS IN MAY

May also witnessed a significant volume of early redemptions. Businesses repurchased bonds worth about VNĐ15.86 trillion before maturity - an increase of 6.7 per cent compared to the same period in 2024.

Real estate bonds issued from June-December are expected to represent a worth of about VNĐ79.77 trillion. —Photo chinhphu.vn

HÀ NỘI — The Việt Nam Bond Market Association (VBMA) reported that real estate firms issued seven separate bond lots in May with a combined value of more than VNĐ10.5 trillion (US$403.5 million).

Of which, Vingroup led the pack, issuing three batches totaling VNĐ6 trillion, according to the association.

Other notable issuers in May included Viet Minh Hoang Construction and Real Estate Investment JSC (about VNĐ3.47 billion), AAC Vietnam JSC (VNĐ500 billion), Song Phuong Industry - Real Estate and Construction LLC (VNĐ388.5 billion), and Van Phu Real Estate Development JSC (VNĐ150 billion).

VBMA data also revealed that in May, the whole market saw 42 separate bond issuances totaling VNĐ46.77 trillion. The banking sector continued to dominate the market, accounting for VNĐ28.72 trillion in bond issuance.

In addition to the surge in new bond issuances, May also witnessed a significant volume of early redemptions. Businesses repurchased bonds worth about VNĐ15.86 trillion before maturity - an increase of 6.7 per cent compared to the same period in 2024.

Looking ahead, VBMA estimates that approximately VNĐ149.87 trillion in bonds will mature over the remaining seven months of 2025. Real estate bonds represent a significant portion of this amount, with about VNĐ79.77 trillion - or 53 per cent - set to mature.

The bond market is expected to remain active, with two major upcoming issuance plans already announced. Of which, Asia Commercial Bank (ACB) has approved its second round of individual bond issuance for 2025, with a maximum value of VNĐ20 trillion.

These will be convertible, unsecured bonds with no warrants, featuring a face value of VNĐ100 million per bond and a maximum term of five years. The interest rate will be a mix of fixed and floating manners.

Meanwhile, Nam Long Investment Corporation plans to issue bonds worth up to VNĐ660 billion. These non-convertible, secured bonds carry a face value of VNĐ100 million each, a three-year term, and an annual interest rate of 11 per cent for the first two periods.

The return of real estate firms to the bond market shows investor confidence and reduction of capital-raising difficulty faced by the sector in early 2025. — VNS

Source: VNS