Hanoi (VNA) – The volume of corporate bondsmaturing in 2024, though lower than that in 2023, is till at a high level, mostlyin industries with payment risks such as real estate and renewable energy, accordingto a report by the Ministry of Finance (MoF).
The ministry said as of the end of 2023, the outstandingcorporate bond debt stood at about 1 quadrillion VND (39.27 billion USD), issued by 432businesses. Among them, the total value of bonds maturing in 2024 is 240.1trillion VND (9.43 billion USD), lower than the 261.6 trillion VND recorded last year.
Credit institutions had the largest outstanding bond debt by the end of 2023with 357.2 trillion VND. The figure for real estate businesses was 351.4trillion VND.
The volume of real estate corporate bonds due in 2024 is 99.6 trillion VND,issued by 92 organisations. The MoF forecast that there will be difficultiesfor a number of businesses in paying corporate bond debt worth about 35.8trillion VND, accounting for 35.9% of the volume of mature bonds of real estatebusinesses, and recommended real estatebusinesses continue to closely monitor their ability to repay bond debt.
For the remaining group of businesses, the combined outstanding bond debt isabout 300 trillion VND, accounting for 29.8% of the total outstanding debt, forbonds issued by 222 businesses. Their maturity volume in 2024 is 87.3 trillionVND for bonds issued by 102 organisations.
According to the MoF, if interest rates will be maintained at the current lowlevel, the capital mobilisation costs will be reduced, encouraging businessesto invest in business expansion, and improving their debt repayment ability. However,the ability of restoring production and ensuring debt repayment obligationsdepends on particular industry and economic situation at home and abroad, itsaid./.
The ministry said as of the end of 2023, the outstandingcorporate bond debt stood at about 1 quadrillion VND (39.27 billion USD), issued by 432businesses. Among them, the total value of bonds maturing in 2024 is 240.1trillion VND (9.43 billion USD), lower than the 261.6 trillion VND recorded last year.
Credit institutions had the largest outstanding bond debt by the end of 2023with 357.2 trillion VND. The figure for real estate businesses was 351.4trillion VND.
The volume of real estate corporate bonds due in 2024 is 99.6 trillion VND,issued by 92 organisations. The MoF forecast that there will be difficultiesfor a number of businesses in paying corporate bond debt worth about 35.8trillion VND, accounting for 35.9% of the volume of mature bonds of real estatebusinesses, and recommended real estatebusinesses continue to closely monitor their ability to repay bond debt.
For the remaining group of businesses, the combined outstanding bond debt isabout 300 trillion VND, accounting for 29.8% of the total outstanding debt, forbonds issued by 222 businesses. Their maturity volume in 2024 is 87.3 trillionVND for bonds issued by 102 organisations.
According to the MoF, if interest rates will be maintained at the current lowlevel, the capital mobilisation costs will be reduced, encouraging businessesto invest in business expansion, and improving their debt repayment ability. However,the ability of restoring production and ensuring debt repayment obligationsdepends on particular industry and economic situation at home and abroad, itsaid./.
VNA