Many businesses issue bonds again

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

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

According to reports, KSB has only recently resumed fundraising through this channel after more than three years. 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, a decrease of nearly 6% compared to the same period last year. The cost of goods sold decreased by nearly 30%, to VND 56.4 billion. Due to sharply increased expenses, the company's after-tax profit in the second quarter reached only VND 12.1 billion, a decrease of 74% compared to the same period in 2023. The main reason for this was a decrease of VND 20 billion in other income.

For the first six months of the year, Bimico recorded net revenue of VND 192.8 billion, a decrease of more than 29% compared to the same period last year. After-tax profit was VND 21.3 billion, a decrease of 64% compared to the same period in 2023.

In the first six months of the year, Bimico raised over 610 billion VND from issuing shares, receiving capital contributions from owners, and over 265 billion VND from borrowing. At the same time, the company also spent 650.8 billion VND to repay principal debt.

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

This also marks CII's return to bond issuance after a three-year absence from the market. CII's most recent issuance was on May 24, 2021, when the company successfully issued 2 million bonds to a securities investment fund, raising 200 billion VND at an interest rate of 11.5% per year. The bonds matured one year after issuance, on May 24, 2022.

At the end of the second quarter of 2024, CII recorded net revenue of VND 699 billion, a decrease of 17% compared to the same period last year. During this period, CII's cost of goods sold decreased significantly, resulting in a gross profit of VND 413 billion, double that of the same period last year. As a result, CII reported a net profit after tax of VND 129 billion in the second quarter, an increase of 55% compared to the same period.

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

IPA Investment Group Joint Stock Company (Code: IPA) has also successfully issued two tranches of bonds with a total value of VND 1,042 billion. Both tranches have an interest rate of 9.5% per year, a term of 5 years, and mature in June 2029.

Prior to these two bond issues, IPA's most recent issuance was in March 2022, successfully raising VND 1,000 billion, with that bond issue maturing in February 2025.

In the second quarter of 2024, IPA's net revenue reached VND 163.5 billion, a 3.3-fold increase compared to the same period last year. However, after-tax profit only recorded VND 87.9 billion, a decrease of 42.6% compared to the same period. The main reason was a decrease in financial revenue, while financial expenses increased fourfold compared to the same period last year.

For the first six months of the year, IPA's net revenue reached VND 1,080 billion, and pre-tax profit reached VND 425 billion, equivalent to 49.2% of the annual profit target.

In addition to the aforementioned companies resuming corporate bond issuance, the market also saw several companies issuing bonds for the first time this year, such as Hai Dang Real Estate Investment and Development Co., Ltd. with 3 issuances from the beginning of the year to date (as of August 1, 2024), raising a total of VND 5,350 billion; Da Nang Information Technology Park Development Joint Stock Company also recorded its first bond issuance with a raising value of VND 500 billion; and Sun Group Joint Stock Company also started issuing bonds from the end of 2023 to date with 4 issuances, raising a total of VND 2,300 billion…

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