In line with its plan to repurchase all 500 billion VND worth of bonds two years before maturity, Bamboo Capital (BCG) has just completed the first phase of repurchasing 397 billion VND worth of bonds.
This is a significant move by Bamboo Capital to effectively manage its financial obligations and optimize its capital strategy amidst the company's improving business performance.
Previously, Bamboo Capital announced its plan to repurchase the BCG122006 bond issue worth VND 500 billion in two tranches. The first tranche involved repurchasing bonds worth VND 397,163,200,000 on January 20, 2025. The second tranche, worth VND 102,836,800,000, is expected to be completed by April 20, 2025. Thus, Bamboo Capital has completed the repurchase of 100% of the bonds in the first tranche as planned.
Reportedly, this bond issue marks Bamboo Capital's first public offering, a form of issuance that requires businesses to comply with stricter regulations than private placements, ensuring greater transparency and safety for investors.
Prior to issuance, Bamboo Capital proactively invited an independent credit rating agency to assess its role as the issuer and received a positive credit rating. The BCG122006 bond issue was also one of the successful bonds issued on the market three years ago. The bonds have a term of 5 years and are redeemable 2 years early according to a plan negotiated and agreed upon with bondholders.
The early bond repurchase took place amidst Bamboo Capital's improving business performance. According to the financial report for the third quarter, after the first nine months of the year, Bamboo Capital's consolidated net revenue reached VND 3,238.1 billion, an increase of 14.3% compared to the same period in 2023. The Group's after-tax profit for the first nine months of the year reached over VND 748 billion, a fourfold increase compared to the same period in 2023.
Bamboo Capital is facing numerous growth opportunities thanks to the benefits of new policies, especially in the renewable energy sector. Regulations such as the amended Electricity Law, Decree 135/2024/ND-CP on encouraging the development of rooftop solar power, and Decree 80/2024/ND-CP on the direct power purchase agreement (DPPA) mechanism open up positive prospects for expanding its energy business. Furthermore, the completion of the Power Development Plan VIII will contribute to creating a favorable legal framework, helping Bamboo Capital optimize its renewable energy development strategy, which is one of the company's key business pillars.
Ngoc Minh
Source: https://vietnamnet.vn/bamboo-capital-mua-lai-gan-400-ty-dong-trai-phieu-truoc-han-2365648.html
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