More businesses “beg” to repay corporate bonds
“Hotest” according to information published on the special page of HNX on February 21, Nova Real Estate Investment Group Joint Stock Company (Novaland – NVL) has to pay interest and principal of two bond lots with a total amount of nearly 1,080 billion dong. . In which, one lot has the planned interest payment period on February 16, 2023 and the other lot has the planned interest and principal payment period on February 13, 2023.
However, the company said that it has not yet arranged a payment source. In a statement sent on the evening of February 21, Novaland said that fluctuations from the macro economy as well as policies on real estate credit control, legal problems, etc. have affected and caused liquidity difficulties. for the entire real estate industry in general and Novaland in particular.
“For the bond lot NVLH2130009, the company has made great efforts to pay the due interest. Besides, the company also proposed that within 2 months, together with the bondholders, they will come up with a plan to pay the bond principal in accordance with the actual cash flow of the company,” Novaland said.
The Group proposes two solutions, “including extending the bond principal payment term in a suitable time, or swapping the bond principal with real estate products invested and developed by the company.” development”.
Novaland believes that the above proposals are completely derived from the force majeure event in accordance with the unpredictable fluctuations of the market and in accordance with the provisions of the bond issuance document (Article 15 of the Law on Bond issuance). Bond Terms and Conditions).
According to information announced 1 day earlier (February 20), Gia Phu Real Estate Company Limited also announced late payment of interest of nearly 3.3 billion VND on February 13 of GPRCH2123001 bond.
The reason given by the business is “cannot arrange a source for payment”. Gia Phu Real Estate did not indicate an expected date of payment of the above amount.
In a short time, a series of businesses asked to “beg” to repay corporate bonds. (Photo: HT)
A series of other real estate and construction businesses also fell into the same situation.
Nice Star Real Estate Development and Investment Co., Ltd. delayed payment of more than 51 billion dong of bond interest NCLCH2226001. The business side is expected to pay this amount on February 10.
The above bonds were issued on January 13, 2022, with a term of 4 years, par value of 10 million dong/bond and total issuance value of 1,500 billion dong. According to HNX, the bond has an interest rate of 12.5%/year and the interest payment period is every three months.
Hung Thinh Icons Joint Stock Company announced late payment of part of the bond principal HTNBH2122002. According to the plan, the company will pay more than 8 billion dong of interest and 300 billion dong of principal on January 3, but the company can only pay the interest and 90 billion dong of the bond principal. 210 billion dong of principal debt is expected to be paid in two installments in March 2023.
The enterprise has also announced additional regulations on overdue penalty interest due to late payment of principal. Accordingly, the interest for late payment principal is 17.75%/year, from January 1, 2023 to the day immediately preceding the date related amounts are fully paid.
Lavida Invest Joint Stock Company announced late payment of bond principal and interest LVDCH2123001. This bond was issued on February 8, 2021, with a term of 2 years, par value of VND 100 million/bond with a total issuance value of VND 70 billion. The bond has collateral, the interest rate is 11%/year and the interest payment period is every 3 months.
As of February 8, 2023, the company has to pay 1.7 billion dong of interest and 62 billion dong of outstanding bond principal. But the business has only paid the interest, the principal balance is expected to be paid in 3 installments from March to May 2023.
An enterprise in the energy sector also announced that it has reached an agreement to extend the time of payment of bond principals with its investor, BCG Energy JSC. Accordingly, the principal debt of BONDBE/2019.01 will be paid in installments until June 30.
Experts “prompt” 2 ministries to soon have instructions to “exchange bonds for real estate”
The bond market report of VNDirect Securities JSC shows that, in 2023, the total value of bonds matured at VND251,849 billion, up 64.4% over the previous year.
In which, the pressure to mature corporate bonds will increase sharply in the second and third quarters of 2023, reaching 76,572 billion dong, 2.5 times higher than the same period last year and 83,127 billion dong, 2.2 times higher.
Experts say that the market may see more insolvent issuers, especially those that have continuously increased their leverage for at least the past 3 years.
Recently, the Ministry of Finance has submitted to the Government the issuance, amendment and suspension of some provisions of Decree 65 on the bond market. Accordingly, the Ministry of Finance proposes to allow enterprises to negotiate for a longer period, change the term of the bond, and possibly convert the bond into a loan or pay with other assets upon approval of the bondholder.
Experts expect that the new additions and the suspension of some provisions in Decree 65 will help businesses have more time to deal with bond issues, reduce liquidity pressure and gradually restore confidence. for the market sales.
The Ministry of Finance and the Ministry of Construction should soon issue instructions on “exchanging bonds for real estate”.
However, Dr. Can Van Luc – BIDV’s chief economist, noted that the Ministry of Finance should have guidelines to encourage businesses to issue to the public.
At the same time, he said that the Ministry of Finance and the Ministry of Construction should soon have instructions to “exchange bonds for real estate”. Mr. Luc assessed that this is a solution that China has done well.
“Ministries should have guidelines for consistent implementation, avoiding conflicts and disputes in the future,” Mr. Luc emphasized.
Mr. Le Hong Khang, credit rating director of FiinRatings, said that with the asset swap plan, businesses must also actively and transparently inform bondholders about the current legal status and developments. How to work with stakeholders.
“The swap must also depend on the decision of the bondholder. The most important thing right now is to support liquidity and support policy related to legality,” Mr. Khang said.