Real estate bonds heat up, rates hit 12–13%

Real estate bonds heat up, rates hit 12–13%

Real estate bond issuances surged 147 per cent year-on-year and accounted for 42 per cent of total corporate bond issuance.

Vinhomes Ocean Park 3 in Hưng Yên Province. In August, Vinhomes also issued VNĐ3 trillion in bonds, with interest rates ranging 11-12.5 per cent. — Photo vingroup.net

The corporate bond market remained active in August, with bond issuance by real estate companies quadrupling from the previous month as property developers increased their fundraising through the debt market.

According to a bond market report released by MB Securities (MBS), corporate bond issuance reached VNĐ61.5 trillion (US$2.4 billion) in August, up 49 per cent from July and nearly double the figure recorded in the same period last year.

Banks continued to lead the market, issuing VNĐ36.3 trillion worth of bonds during the month, accounting for 59 per cent of total issuance. Meanwhile, real estate companies recorded VNĐ20 trillion in issuance, four times the July figure.

Several large property bond offerings were recorded during the month. 

Hung Long Real Estate Development JSC issued VNĐ7 trillion in bonds at an annual coupon of 10.6 per cent with an 84-month tenor. Thanh Quang Development and Trading Investment Co., Ltd., issued another VNĐ7 trillion at 10.6 per cent per year with a 60-month tenor.

Vinhomes also issued VNĐ3 trillion in bonds, with interest rates ranging from 11 per cent to 12.5 per cent per year and maturities of 24-36 months.

According to MBS analysts, Thanh Quang and Hung Long are companies associated with Masterise Group. The funds raised from the bond offerings will be used to acquire part of the Ha Long Xanh Complex Urban Area project, which is being developed by a consortium of Vingroup and Vinhomes.

Property issuance jumps 147 per cent

In the first eight months of 2026, total corporate bond issuance reached nearly VNĐ384.2 trillion, up 3 per cent year-on-year.

Banks remained the largest issuing group, accounting for VNĐ192.2 trillion, or 50 per cent of total issuance. However, their issuance value was down 30 per cent from the same period last year.

The average coupon rate for bank bonds was 8.5 per cent per year.

Techcombank had the largest issuance among banks tracked by MBS, at VNĐ25 trillion, followed by Sacombank with VNĐ20 trillion and MB with VNĐ19.9 trillion.

Real estate companies, meanwhile, accounted for VNĐ161.3 trillion of issuance in the first eight months, a 147 per cent increase year-on-year and 42 per cent of total corporate bond issuance.

The average coupon rate for real estate bonds stood at 10.5 per cent per year.

Vinhomes led the property sector with VNĐ45 trillion in bond issuance, followed by Hung Long with VNĐ14 trillion and Marina Centre Investment Co., Ltd. with VNĐ10.2 trillion.

The property sector also accounted for most of the companies issuing bonds at the highest interest rates since the beginning of 2026.

Khai Hoan Land issued a VNĐ190 billion bond at an annual interest rate of 13.5 per cent, while Tandoland offered rates of 12-13 per cent. Thai Son Construction, Can Gio Tourist City Corporation and Green City Development JSC each issued bonds at 12.5 per cent per year.

Some bond lots issued by Vinpearl and Sun Vung Tau Ltd., Co., carried annual interest rates of 12 per cent.

Across the corporate bond market, the average interest rate in the first eight months was 9.5 per cent per year, higher than the 7.3 per cent average recorded in 2025.

Private placements accounted for 85 per cent of total issuance, equivalent to VNĐ327 trillion.

MBS estimates that around VNĐ57 trillion worth of corporate bonds will mature during the remaining months of 2026. Real estate bonds are expected to account for about 74.5 per cent of the total, equivalent to VNĐ42.4 trillion.

At the same time, outstanding payment obligations remain an issue for part of the corporate bond market.

According to MBS data, the cumulative value of corporate bonds that had delayed payment obligations by the end of August was estimated at nearly VNĐ43.4 trillion, equivalent to about 3 per cent of total corporate bond debt outstanding across the market.

Real estate companies accounted for more than 70 per cent of the delayed obligations. The commercial and services sector followed with more than 22 per cent, while construction accounted for 1 per cent and other sectors made up 7 per cent. 

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