Becamex mulls new bond issue in 2023

HCMC – Investment and Industrial Development Corporation (Becamex) has announced to issue VND760 billion worth of bonds this year.

This move comes shortly after the company dropped its initial plan to issue bonds worth VND1 trillion. The firm said it will announce details about offering methods and plans to use the proceeds from the bond sale later.

In 2022, Becamex had set forth a proposal to issue bonds amounting to VND2 trillion. However, difficulties in capital mobilization forced the company to abandon this plan during the 2023 shareholders’ meeting.

On June 2, 2023, Becamex announced a separate bond issue totaling VND1 trillion, with a maturity date set for 2025. The launch of the bonds, which were non-convertible and asset-backed, was slated for the same month with a coupon rate of 13% for the first year. The proceeds from this issue would have been used to settle existing bond debt.

On June 26, Becamex rescinded this bond sale, having secured alternative financial resources for its operations.

The first half of 2023 saw Becamex’s revenue drop by 44% year-on-year to nearly VND1.9 trillion. Its after-tax profit also plummeted by 96.5% to VND48.9 billion.

Becamex has projected total revenue of VND9,460 billion and after-tax profit of VND2,260 billion for 2023. However, with a semi-annual profit of just VND48.9 billion, the company is currently lagging behind its annual profit target, having achieved a mere 2.2%.

Its BCM share price edged down by 1.45% at the close today, September 18, to VND68,000 per share.

The Hochiminh Stock Exchange saw 122 advancers and 399 decliners, with the VN-Index falling 15.55 points, or 1.27%, to settle at 1,211.81 points.

The trading volume reached 845 million shares worth around VND19.8 trillion, falling 7.89% in volume and 8.81% in value against the previous session. Block deal transactions totaled 82.9 million shares worth VND2.3 trillion.

The VN30 basket, grouping the 30 largest-cap stocks, became the main drag on the main index. With 27 bluechips dipping, the VN30-Index lost 15.11 points, or 1.22%, to close at 1,223.70 points.

SSI and STB managed to gain 0.56% and 0.31%, respectively, while HPG remained at its reference price of VND27,600, and VHM closed down by 3.1% to VND48,950 per share.

Bank stocks VCB and BID also contributed to the downturn, both causing a decline of between 1.3 to 1.4 points in the overall index, as they inched down 1.11% and 2.24%, respectively.

VIX took the lead by liquidity today with a matching volume of more than 30.8 million shares, but it finished the session 2.8% lower, at VND19,050 per share.

On the Hanoi Stock Exchange, the HNX-Index dropped 2.28 points, or 0.9%, ending the session at 250.48 points, with 53 winners and 132 losers.

The trading volume on the northern market totaled 78.25 million shares, valued at VND1.62 trillion.

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