Many businesses issue bonds again

The bond market is showing signs of heating up with the return of businesses after a long absence. Illustration photo: Luc Giang

Accordingly, Binh Duong Minerals and Construction Joint Stock Company (Bimico - Code: KSB) has just announced the successful issuance of bond lot KSBH2429001 with a mobilized value of 300 billion VND. The bond has a term of 5 years, interest rate of 10%/year, maturing on June 28, 2029.

It is noted that after more than 3 years, KSB has raised capital again through this channel. The company's most recent bond issuance was at the end of April 2021, when KSB successfully issued 350 billion VND to a domestic institutional investor.

In the second quarter of 2024, Bimico recorded revenue of VND 150 billion, down nearly 6% over the same period. Of which, the cost of goods sold decreased by nearly 30%, down to VND 56.4 billion. Due to the sharp increase in costs, the company's second quarter after-tax profit only reached VND 12.1 billion, down 74% over the same period in 2023. The main reason was that the other income target decreased by VND 20 billion.

In the first 6 months of the year, Bimico recorded net revenue of VND 192.8 billion, down more than 29% compared to the same period last year. Profit after tax was VND 21.3 billion, down 64% compared to the same period in 2023.

In the first 6 months of the year, Bimico earned more than 610 billion VND from issuing shares, receiving capital contributions from owners and more than 265 billion VND from loans. At the same time, the company also spent 650.8 billion VND to pay off principal debt.

Similarly, Ho Chi Minh City Infrastructure Investment Joint Stock Company (Code: CII) has just successfully issued bond code CIIB2427001, successfully mobilizing 300 billion VND with an interest rate of 9.95%/year. The bond has a term of 3 years, maturing on July 22, 2027.

This is also CII's return to bond issuance after 3 years of absence from the market. CII's most recent issuance was on May 24, 2021, the company successfully issued 2 million bonds to a securities investment fund and successfully mobilized 200 billion VND with an interest rate of 11.5%/year, the bond lot matured 1 year after issuance, ie May 24, 2022.

At the end of the second quarter of 2024, CII recorded net revenue of VND699 billion, down 17% year-on-year. During this period, CII's cost of goods sold decreased sharply, helping the company earn a gross profit of VND413 billion, double that of the same period last year. As a result, CII reported a profit after tax of VND129 billion in the second quarter, up 55% year-on-year.

In the first 6 months of the year, CII's net revenue reached 1,577 billion VND, a slight decrease compared to the same period; after-tax profit reached 452 billion VND, 3.8 times higher than the same period last year.

IPA Investment Group Corporation (Code: IPA) has also successfully issued 2 bonds with a total mobilized value of 1,042 billion VND. Both bonds have an interest rate of 9.5%/year, a term of 5 years, and both mature in June 2029.

Before these two bond lots, IPA's most recent issuance was in March 2022, when the company successfully raised VND1,000 billion. This bond lot will mature in February 2025.

In the second quarter of 2024, IPA's net revenue reached VND163.5 billion, up 3.3 times over the same period. However, after-tax profit was only VND87.9 billion, down 42.6% over the same period. The main reason was a decrease in financial revenue, while financial expenses increased 4 times over the same period last year.

Accumulated revenue in the first 6 months of the year, IPA's net revenue reached 1,080 billion VND, pre-tax profit reached 425 billion VND, equivalent to completing 49.2% of the annual profit plan.

In addition to the above-mentioned enterprises returning to issue corporate bonds, the market also recorded a number of enterprises issuing bonds for the first time this year such as Hai Dang Real Estate Investment and Development Company Limited with 3 issuances since the beginning of the year (as of August 1, 2024), the total mobilized value reached 5,350 billion VND; Da Nang Information Technology Park Development Joint Stock Company also recorded the first bond issuance with a mobilized value of 500 billion VND; Sun Group Corporation also started issuing bonds from the end of 2023 until now with 4 issuances, the total mobilized value reached 2,300 billion VND...

Source: https://laodong.vn/kinh-doanh/nhieu-doanh-nghiep-phat-hanh-trai-phieu-tro-lai-1374767.ldo