Doing a billion-dollar project with Trump Organization, Vietnamese tycoon determined to raise enough 6,000 billion

KBC continues its plan to raise a massive amount of capital.

Kinh Bac Urban Development Corporation - JSC (HoSE: KBC) announced on June 23rd a Board of Directors' resolution on the plan to handle 147.1 million unsold KBC shares from the private placement of 250 million common shares, at a price of VND 23,900 per share (compared to VND 26,100 per share at the end of trading on June 24th).

By the end of the share subscription period (June 20-23), only 6 investors participated in purchasing 102.9 million shares, equivalent to over 2,459.3 billion VND.

The remaining shares (147.1 million shares) will continue to be distributed by KBC to professional securities investors (domestic institutions and individuals), with a transfer restriction of one year from the date the offering ends.

KBCphathanhcp2025Jun KBC.jpg — *KBC continues to raise capital. Source: KBC*

The purpose of issuing 250 million shares is to raise approximately 6,000 billion VND for financial restructuring and to supplement working capital.

Specifically, KBC plans to use VND 4,428 billion to repay principal and interest on loans to Saigon - Bac Giang Industrial Park Joint Stock Company, VND 1,462 billion to repay debt to Saigon - Hai Phong Industrial Park Joint Stock Company, over VND 105 billion to repay principal loans from VietinBank, and VND 160 billion to supplement working capital.

If completed, KBC will increase the number of outstanding shares from over 767.6 million to over 1.01 billion shares, corresponding to a charter capital of VND 10,176 billion.

The initial list of prospective investors included 11 large institutions and individuals, such as DC Developing Markets Strategies Public Limited (Dragon Capital), Prudential Vietnam, SGI Fund, VPBank Securities, Samsung Vietnam Securities, Vietnam Enterprise, Amersham Industries Limited, along with 4 individual investors.

However, the results showed that only VPBankS purchased the full 20 million shares as registered, while other investors purchased only a portion or did not participate at all.

Alongside its fundraising efforts, KBC also attracted attention by implementing the Khoai Chau urban, eco -tourism , and golf complex project (Hung Yen province) with a total investment of $1.5 billion, in cooperation with The Trump Organization - a conglomerate linked to the family of US President Donald Trump.

KBCTrump 2024SepKBC.gif — *Eric Trump, Executive Vice President of The Trump Organization, and Dang Thanh Tam signed a cooperation agreement in the presence of Mr. Trump in Florida in September 2024 - Photo: KBC*

The Trump International Hung Yen project, undertaken by Hung Yen Investment and Development Group Joint Stock Company (a subsidiary of KBC), is positioned as Vietnam's most luxurious golf course, complete with a resort exceeding 5-star standards. The project has attracted significant investor interest, demonstrating Vietnam's appeal to international investors.

Speaking to Forbes and on the KBC website, Mr. Dang Thanh Tam stated that IDG Capital is ready to act as the lead arranger for financing and also contribute capital to the project. Upon completion, expected after four years, the project will be handed over to the Trump Organization for management and operation, ensuring the quality standards of the Trump brand.

KBC's financial health and journey to attracting FDI.

Regarding financial health, the Q1/2025 report shows that KBC maintained strong growth momentum. Total assets reached over VND 54.2 trillion, a significant increase compared to VND 44.7 trillion at the end of 2024. Cash and cash equivalents reached nearly VND 6,581 billion, a slight increase compared to VND 6,566 billion at the end of 2024.

TrumpInternationalHungYen lekhoicong KBC.jpg — *Groundbreaking ceremony for the Trump International Hung Yen project. Photo: Government Information*

However, accounts receivable increased from VND 13.3 trillion to over VND 16.3 trillion, and inventory surged from VND 13.8 trillion to nearly VND 20.28 trillion, reflecting large-scale investments in real estate and industrial park projects.

Regarding debt, KBC recorded long-term debt of over VND 17.1 trillion and short-term debt of VND 442 billion, lower than its equity of nearly VND 21.5 trillion. The debt-to-equity ratio is quite low, compared to the average of 3 times for listed companies.

KBC's journey under the leadership of Mr. Dang Thanh Tam is a testament to Vietnam's efforts to attract foreign direct investment (FDI).

Over the past decades, Mr. Tam has transformed the industrial parks within the KBC ecosystem into destinations for numerous global corporations such as Foxconn, Luxshare, Goertek (an Apple partner), and LG, with total investments amounting to tens of billions of USD.

Investors from South Korea, Japan, and now the US, especially The Trump Organization, are also attracted by Vietnam's transparent business environment and preferential policies.

The Trump International Hung Yen project is a significant milestone, not only because of its $1.5 billion scale but also because of the collaboration with a global brand that has high standards of transparency. Mr. Tam shared that The Trump Organization only works with partners who are not involved in any opaque financial matters and who have undergone thorough vetting.

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