IPA Investment Group Joint Stock Company (HNX: IPA) has just approved a plan to repurchase two tranches of bonds ahead of schedule. Specifically, IPA plans to repurchase VND 300 billion worth of bonds with code IPAH2104002 and VND 400 billion worth of bonds with code IPAH2124003 from June 26 to July 15, 2024. Thus, the total value of bonds repurchased ahead of schedule is VND 700 billion.
Two tranches of bonds, IPAH2104002 issued in November 2021 and IPAH2124003 issued in December 2021, both have a value of VND 1,000 billion, a 3-year term, and a fixed interest rate of 9.5% per annum.
Both bond issues are "four no" bonds: non-convertible, no warrants, no asset-backed collateral, and not subordinated corporate debt. The bondholder representative and payment agent is VNDirect Securities Joint Stock Company.
In a contrasting move, on June 26th, the IPA Board of Directors approved a private placement of bonds in multiple tranches. However, the specific issuance plan has not yet been announced.
Mr. Vu Hien – Chairman of the Board of Directors of IPA – is entrusted with deciding on matters, transactions, signing, transferring, and implementing agreements, contracts, and other documents related to the issued bonds.
A few weeks ago, IPA also issued a bond issue worth VND 317 billion from the "4-no" bond issuance. This bond issue has the code IPA2429001, a 5-year term, and a fixed interest rate of 9.5% per year. The purpose is to repay the loan of Nam Can Tho Investment and Development Joint Stock Company.
As of March 31, 2024, IPA's total outstanding debt was VND 3,981.5 billion, accounting for 44.6% of total capital. Of this, bond debt was VND 3,600 billion, with the remainder being loans from related parties, banks, and other individuals.
Regarding bond issuance, one of the issues of interest to investors is the IPA's investment in Trung Nam Renewable Energy Joint Stock Company.
Specifically, according to the Q1/2024 financial report, IPA recorded a new investment of VND 850 billion in capital contribution to Trung Nam Renewable Energy Joint Stock Company, equivalent to 9.36% of the capital.
Prior to this transaction, IPA had already paid Trung Nam Energy Investment and Development Joint Stock Company (Trung Nam EDI) the full amount for the purchase of Trung Nam Renewable Energy shares under the share transfer agreement dated December 29, 2023. IPA stated that it would acquire 85 million Trung Nam Renewable Energy shares at a par value of VND 10,000 per share.
Also in the first quarter of 2024, IPA injected additional investment into Trung Nam EDI bonds with code EDI12301, thereby increasing the original investment value from nearly VND 290 billion at the beginning of the year to nearly VND 456 billion as of March 31, 2024.
A few months before the transaction took place, Trung Nam EDI pledged 162.9 million shares of Trung Nam Renewable Energy as collateral at VNDIRECT. Furthermore, in early 2024, Trung Nam EDI continued to pledge nearly 185.2 million shares of Trung Nam Renewable Energy as collateral at VNDIRECT.
At IPA's 2024 Annual General Meeting, Ms. Pham Minh Huong, a member of IPA's Board of Directors, stated that this is an opportunity for the company to consider expanding its investment in the renewable energy sector. Ms. Huong noted that information regarding Trung Nam's potential for review and inspection is a policy risk related to the State.
"We partnered with VNDIRECT because we believe that renewable energy is the industry of the future, and Trung Nam's risks are not related to the company's assets or projects. The energy segment inherently generates cash flow, allowing us to confidently invest in developing other service areas. That's why IPA chose Trung Nam to issue and underwrite the bonds," said a member of the IPA Board of Directors.
Ms. Huong also added that this was "a stroke of luck" and that this wasn't initially planned. If the investment is successful, the company will consider expanding its investment strategy into the energy sector .
Source: https://www.nguoiduatin.vn/ipa-chi-700-ty-dong-mua-trai-phieu-truoc-han-a670645.html
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