Real estate firms sell bonds worth $402 million in May
Real estate companies have raised $862 million from bond issuance in April and May, thanks to an improved business environment and better access to funding.
THE HANOI TIMES — Vietnamese real estate companies issued bonds worth VND10.5 trillion (US$402 million) in May 2025, according to data from FiinProX.
Clients inquire about a real estate project in Hanoi. Photo: Pham Hung/The Hanoi Times
This brought the sector's total bond issuance in April and May to VND22.5 trillion ($862 million).
Real estate companies returned to the bond market in April 2025 after a three-month hiatus, as they need approximately VND69 trillion ($2.6 billion) to settle their bonds in the second half of the year.
In May, Viet Minh Hoang Construction Investment Real Estate JSC issued VND3.5 trillion ($133 million) in five-year bonds, maturing on May 22, 2030.
The company offered an initial fixed rate of 8.3% per annum, followed by a floating rate based on a reference rate plus a 3.5% margin.
Viet Minh Hoang will use the proceeds from the bond issue to acquire a real estate project in Cau Giay District, Hanoi. This is Viet Minh Hoang's only bond issue to date.
FiinRatings assessed Viet Minh Hoang's business capacity as average. Since its establishment in 2010, the company has only had one real estate project in Hanoi, and its total assets are smaller than those of its industry peers.
The company is expanding through the acquisition and development of new projects in Hanoi and Phu Quoc.
FiinRatings estimates that the company's plan to double its assets and increase its debt levels will put pressure on its operating efficiency.
Over the next 12-24 months, Viet Minh Hoang's financial leverage is expected to increase significantly due to increased borrowing and bond issuance to support its projects.
If the company manages to raise capital and increase its equity as planned, its debt-to-equity ratio could reach 0.8x by 2025, a relatively high figure for the sector. Its liquidity remains average, with an estimated liquidity coverage ratio between 1.15x and 1.20x this year.
In April, TCO Real Estate Investment and Consulting JSC sold bonds worth VND3 trillion ($115 million) with a 12-month term and an annual interest rate of 8.2%. The issuance raised TCO's total bond debt to VND5.5 trillion ($211 million).
According to the Hanoi Stock Exchange, the company's total equity will reach VND1.2 trillion ($46 million) at the end of 2024, slightly lower than the previous year.
Total liabilities surged by 140% year-on-year to VND12 trillion ($459 million) at the end of 2024, raising the debt-to-equity ratio from 4.5 times to 9.9 times. TCO posted an after-tax profit of VND76.8 billion ($2.9 million) in 2024, almost six times higher than in 2023.
Other real estate companies have also issued bonds in recent months, including AAC Vietnam JSC, Song Phuong Industrial-Real Estate-Construction Co Ltd, Van Phu Real Estate Development JSC, Vingroup, and OLECO-NQ Co., Ltd.
According to VIS Rating, residential real estate developers are accelerating project development following the completion of legal proceedings and increased housing demand.
The rating agency forecasts that bond issuance growth in 2025 will match the 13% rate recorded in 2024, with residential developers continuing to lead the market.
VIS Rating attributed the market prospects to an improved business environment, better access to funding.
However, the rating agency warned that liquidity will remain a challenge. About 60% of the bonds maturing in 2025 belong to the residential real estate sector.
In May 2025, seven real estate firms reported credit events such as late payments and debt restructuring, signaling that liquidity stress persists.
In the second half of 2025, 474 bond transactions with a total outstanding value of VND150 trillion ($5.7 billion) will mature.
Of these, 148 bonds, worth VND25.8 trillion ($989 million), are already in default. Real estate companies account for half of the maturing debt.
VIS Rating noted that 26 maturing bonds, with a total value of VND19 trillion ($728 million) and issued by 15 real estate companies, are at risk of default for the first time.
On a more positive note, six real estate firms repaid nearly VND5 trillion ($192 million) in overdue principal in May, marking a 480% increase from April.
As a result, the recovery rate for overdue principal rose 1.2 percentage points to 31.9%.
