Real estate sector faces debt default risk – VietNamNet

Corporate bonds worth VND270 trillion issued by real estate companies will soon fall due, FiinGroup reported.
According to the report, August saw a plunge in corporate bond sales, with only 19 issues worth VND9.4 trillion, down 84% year-on-year and 58% against July. This was a record low in the year, even lower than February when the issue volume is normally low during the Tet holiday.
Investors and issuers are waiting and seeing as new regulations will come out soon. Bond buyers have lost interest in trading bonds as they are uncertain about whether they could trade bonds on the secondary market if listed as unprofessional investors.
While raising funds from the debt market is hard, the real estate sector is struggling to access bank loans, as the additional credit growth quotas granted by the central bank are prioritized for the business and manufacturing sectors.
Source: Saigon Times
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