After the Tan Hoang Minh case, real estate businesses faced pressure to repay their bonds due

This is a statement made by the credit rating organization FiinRatings (belonging to FiinGroup) in a report assessing the impact of a number of violations in the corporate bond market on entities in the Vietnamese capital market. Male.

According to FiinRatings, the financial health of real estate companies in general is still relatively safe, except for those companies and projects created for the purpose of raising bond capital or borrowing bank credit. . Financial leverage of the real estate industry and residential real estate segment is still relatively low compared to the previous 7 years.

The notable issue mentioned by the report is the pressure to repay bonds that are due in the next 2-3 years. Specifically, the size of the corporate bond debt balance of the real estate industry is about VND 189,000 billion at the end of 2021, 73% of this value will have a maturity point in the next 3 years (from 2022-2024). Thus, there will be about 138 trillion dong of bonds coming due.

About VND 138,000 billion of corporate bonds in the real estate sector are due to be paid in the next 2-3 years

FiinRatings experts recognize that the debt repayment pressure of real estate businesses in the context of gradually recovering from the pandemic is huge. This can cause liquidity risk of the distribution agents that commit to buy back the bonds, which are financial institutions such as securities companies and banks.

“This debt repayment pressure can affect the risk of the stock market because stocks are pledged as security for bonds or pledged to buy low-quality bonds…” – An expert at FiinRatings commented.

The scale of bond credit at the end of 2021 was at VND 273,900 billion, accounting for only 2.16% of total profitable assets and 2.63% of total credit outstanding of commercial banks in Vietnam. Therefore, FiinRatings believes that the current events in the market are unlikely to have too great an impact on the credit quality of the commercial banking system.

A recent report by Vietcombank Securities Company (VCBS) also stated that in case the management agencies can coordinate with Tan Hoang Minh Group to properly settle the interests of bondholders being organizations and individuals, The amount of damage will be limited to a narrow range.

On the banks’ side, the direct impact of the cancellation of the bond issuance results of Tan Hoang Minh corporate group is not much. According to available information, credit institutions have participated in buying at least 3 bond issues of Tan Hoang Minh group. However, the scale of 3,000 billion dong of bonds of the above 3 rounds and 10,000 billion dong of bonds of 9 issuances (which were canceled by the State Securities Commission) still have a low proportion compared to the total credit of the whole system. banking system.

For real estate businesses, the cancellation of Tan Hoang Minh bond issuance results in the short term will have a multidimensional impact on the ability to raise capital of a group of businesses in the same industry as investors will have a selective perspective. much more carefully about the accompanying terms of real estate corporate bond products.

According to Thai Phuong