Becamex IDC (BCM), which issued 3-month bonds, has requested to withdraw the collateral.
Becamex IDC (BCM) has just approved the withdrawal of collateral for bond issue BCMH2427001. The withdrawn collateral is the land use right, ownership right of the house and assets attached to the land, plot number 245, map sheet 44 in Hoa Phu ward, Thu Dau Mot city, Binh Duong province, coded CY 3756299.
Following this decision, Becamex IDC will proceed with soliciting bondholder opinions to implement the reduction of collateral assets in October 2024.
Becamex IDC (BCM) has just issued 3-year bonds and has requested to withdraw the collateral (Photo: Provided).
The BCMH2427001 bond issue was only issued by Becamex IDC a few months ago, on June 17, 2024. This bond issue has an interest rate of 10.5% per year and a total face value of VND 800 billion. Thus, just over three months after issuance, Becamex IDC is already planning to withdraw some of the collateral from the BCMH2427001 bond issue.
Becamex IDC's reduction of collateral assets is taking place amidst a clear decline in business performance. In addition, debt is increasing, exceeding equity at the end of Q2 2024.
Under pressure to repay loans, BCM only achieved 22% of its annual target.
Becamex IDC is renowned as a key enterprise in Binh Duong province, currently implementing two major projects: Bau Bang Industrial Park (1,000 hectares) and Cay Truong Industrial Park (700 hectares).
In terms of business performance, Becamex IDC recorded revenue of VND 1,973.5 billion in the first half of the year, a decrease of 9.7% compared to the same period last year. While revenue decreased, BCM also faced additional pressure from interest expenses.
Specifically, interest expenses increased by 17% in the first half of 2024, reaching VND 538 billion. As a result, the company's profit was significantly eroded, falling to only VND 513 billion. Compared to the same period, after-tax profit increased more than tenfold.
At first glance, this might seem like a positive result, but in reality, compared to the 2024 business target, Becamex IDC has only achieved 22% of the year's plan.
Debt from bonds is growing larger.
BCM's high interest expense is related to the company's capital utilization activities. At the end of June 2024, BCM recorded total capital of VND 55,029 billion. Of this, total short-term and long-term debt accounted for VND 21,274 billion, an increase of 7.9% compared to the beginning of the year.
Of this, short-term debt accounts for VND 9,323 billion and long-term debt accounts for VND 11,950 billion. The total short-term and long-term debt currently exceeds equity, creating significant pressure from interest payments and dragging down the company's profits.
Part of the debt pressure comes from Becamex IDC's bond issuances. Since the beginning of the year, the company has raised capital through bond issuances five times, totaling nearly VND 1,800 billion. All five bond issues have a maturity period of 3 years.
As of the end of Q2/2024, Becamex IDC's outstanding bond debt on its financial statements was approximately VND 12,200 billion, with bondholders mostly being banks and investment funds.
Regarding Becamex IDC's bond issuance activities, VNDirect previously reported that the pressure of bond maturity would increase in 2026 and 2028. The total outstanding bond debt maturing would be approximately VND 4,500 billion and VND 3,700 billion, respectively.
Notably, Binh Duong Business and Development (TDC), a subsidiary of Becamex IDC, has recently been facing cash flow difficulties. The company had to issue 35 million shares to repurchase a portion of the TDC.BOND.700.2020 bond issue. This bond issue was previously issued by TDC in 2020 to cover dividend payments and late dividend interest payments to its parent company, Becamex IDC.
Source: https://www.congluan.vn/no-vay-tang-cao-becamex-idc-bcm-moi-phat-hanh-trai-phieu-3-thang-da-xin-rut-lai-tai-san-dam-bao-post316330.html
Comment (0)