TNG issues bonds to pay for goods and employee salaries

It is expected that in the second half of this year, TNG will offer 400 billion VND in bonds secured by shares of the Chairman of the Board of Directors to pay for raw materials and salaries for employees.

According to a document sent to the State Securities Commission, TNG Investment and Trading Joint Stock Company (stock code: TNG) plans to offer 4 million bonds with a face value of VND100,000. The total value of the bonds offered is VND400 billion, 1.3 times the outstanding bonds of the enterprise.

The company plans to offer this bond from the second quarter to the fourth quarter of 2024 after being approved by the State Securities Commission. This bond has a term of 48 months from the date of issuance and is expected to mature in 2028.

This bond has a fixed interest rate of 9.5%/year for the first 4 interest periods (i.e. the first year). From the following periods, the interest rate is calculated by the average of the 12-month deposit interest rates of 4 state-owned banks plus 3.5%. The bond collateral is 10 million TNG shares owned by Mr. Nguyen Van Thoi, Chairman of the Board of Directors of the company, with a determined value of 220.6 billion VND.

The proceeds from this issuance will be used to pay salaries to employees. The remaining VND176 billion will be used to pay for raw materials and services to 28 suppliers. This plan has been adjusted compared to the initial information announced by TNG's leadership in the Board of Directors' resolution in April 2024. At that time, the leadership planned to use VND200 billion raised from the bonds to pay salaries to employees, VND24 billion to pay social insurance and unemployment insurance. The remaining amount will be used to pay for raw materials to 33 partners.

In addition to issuing bonds, this year, TNG also plans to issue a total of more than 21.2 million shares to pay dividends and issue to existing shareholders. According to the company's management, this issuance is intended to supplement capital for production and equip more machinery and equipment, expand production scale, and seek investment opportunities. In addition, the new capital source also helps the company increase its scale of operations and contribute to being more proactive in production and business, taking advantage of strategic partners to improve competitiveness and position in the market.

Forecasting that the world economic situation will continue to fluctuate, TNG's board of directors has set a production and business plan with an estimated revenue of VND 7,900 billion (an increase of 11% compared to last year). Profit after tax is expected to reach VND 310 billion (an increase of about 42% compared to last year). The company plans to pay a minimum dividend of 16% (of which 8% is in shares and 8% in cash).

According to the first quarter financial report, TNG's net revenue from sales and service provision reached VND1,354 billion, up 1.4% (equivalent to VND19 billion) over the same period last year. Gross profit was recorded at VND203 billion, up VND11 billion (equivalent to 5.8%) over the same period. Profit after tax reached nearly VND42 billion, down nearly VND2 billion (equivalent to 4.1%) over the same period last year.

Source: https://baodautu.vn/tng-phat-hanh-trai-phieu-de-tra-tien-hang-luong-nhan-vien-d217670.html