HCMC – Businesses have redeemed nearly VND87 trillion worth of bonds before their maturity since the beginning of this year, despite the difficulties in raising capital through bond issuance in the currently sluggish bond market.

Data from the Vietnam Bond Market Association (VBMA) showed that businesses have spent over VND8.86 trillion buying back their bonds in the first two weeks of June this year before the debt falls due.

As of June 16, the total value of bonds redeemed by businesses has reached VND86,720 billion, a remarkable increase of 42% compared to the same period in 2022.

Bond maturity has placed considerable pressure on enterprises since the start of this year, with a total value of bonds set to fall due from now until the end of 2023 exceeding VND182.4 trillion.

Among these, the real estate sector accounts for 51.4%, with VND93.7 trillion worth of bonds maturing within this year, followed by the banking sector with bonds valued at VND31.1 trillion.

June alone will witness over VND35.5 trillion worth of corporate bonds reaching maturity, doubling the figure in May 2023.

According to a report by the VBMA, only VND600 billion worth of corporate debt was issued in the first half of June through private placement.

The total value of corporate debt issued year-to-date has now totaled nearly VND35.2 trillion.