20 real estate businesses issue trillion VND bonds

Noted in the report on the situation of the corporate bond market in 2021 and the first quarter of 2022 sent by the Ministry of Finance to the Prime Minister, this agency has listed 20 enterprises. real estate had the highest bond issuance in the past year.

Specifically, the total volume of bonds issued by these 20 enterprises last year reached over 100,000 billion VND, accounting for nearly half of the total amount of bonds issued by real estate businesses in the year. Notably, in many enterprises, the ratio of issuance volume to equity has reached dozens of times.

According to the Ministry of Finance, real estate enterprises with a large bond issuance volume last year were Van Truong Phat Investment and Construction Joint Stock Company, Osaka Garden Joint Stock Company, and Real Estate Trading Company Limited. Mediterranena Revival Villas…

Also in the list given by the Ministry of Finance, a series of real estate enterprises with a large volume of bond issuance last year are major real estate developers in the market, such as the Import-Export Corporation and the Import-Export Corporation. Vietnam Construction (Vinaconex) issued 6,000 billion; Viet Han Trading – Advertising – Construction – Real Estate Joint Stock Company (TNR Holdings) issued VND 4,000 billion; or a group of 3 companies under Sunshine Group (Sunshine Homes Joint Stock Company, Sunshine AM Joint Stock Company, Sunshine House Trading Joint Stock Company) issued a total of 10,100 billion VND…

Also according to the list announced by the Ministry of Finance, in the group of 20 real estate enterprises with the highest amount of bond issuance last year, many companies issued bonds at a rate dozens of times higher than equity.

In which, Mediterranena Revival Villas Company with equity of only 153 billion, but last year has issued to 7,200 billion VND corporate bonds, equivalent to the issue-to-equity ratio of more than 47 times.

Similarly, Osaka Garden Company last year issued 7,700 billion corporate bonds but its equity was only 270 billion VND. Thus, the ratio of bond issuance/equity of this real estate developer is up to 28.5 times.

In addition to the two enterprises mentioned above, a series of businesses are issuing bonds many times more than equity such as Van Truong Phat Investment and Construction Joint Stock Company 4 times; Hoang Phu Vuong Joint Stock Company and Residence Investment and Development Joint Stock Company are 6 times more; Sunshine House Business Joint Stock Company is 7.3 times more…

According to the Ministry of Finance, in 2021, the total volume of corporate bond issuance is about 639,766 billion VNDan increase of nearly 39% compared to 2020. Of which, privately issued bonds accounted for nearly 95%, equivalent to 605,520 billion VND, an increase of 39% compared to the previous year. If counting the first quarter of this year alone, the individual issuance volume is 104,752 billion VND3 times higher than the same period in 2021.

In recent years, along with credit institutions, real estate is often the group of businesses with the largest amount of bond issuance. Particularly in 2021, the volume of corporate bonds issued by real estate companies is more than 212,000 billion VND, while the issuance volume in the first quarter of 2022 is also more than 212,000 billion VND. 47,000 billion VND.