HCMC – Kinh Bac City Development Holding Corporation (HOSE: KBC) plans to launch a VND1-trillion bond issue as it seeks to restructure its growing debt.
The non-convertible bonds will come with a term of two years and a fixed coupon rate of 10.5% per annum. The bonds, which will be secured by collateral, are expected to be issued in the third quarter of 2024, with coupon payments due every six months.
The company plans to use the proceeds from the bond issue to restructure its debt and the debt of its subsidiaries. As of the end of June, the real estate developer’s total short- and long-term debt had risen by 33.9% against the start of the year to VND4.9 trillion, equal to 24% of its total equity.
The firm’s financial performance has been under pressure. In the second quarter, the company reported a 61.8% year-on-year slump in revenue to VND891.73 billion, while net profit after tax plummeted 73.5% to VND267.94 billion. The gross profit margin also dropped sharply from 70.8% to 52.1%.
For the first half of 2024, the company recorded revenue of over VND1.04 trillion, down by a steep 77.1% over the same period last year, and net profit of VND191.21 billion, plunging 90.8% year-on-year.
These figures indicate that the company is seeing its 2024 profit targets beyond reach, having achieved only 4.8% of the full-year goal.
Wrapping up the trading session today, August 27, KBC still edged up by 0.19% to VND26,750 per share, with a trading volume of over 2.4 million shares.
With 169 stocks advancing and 235 declining, the benchmark VN-Index moved sideways with a slight 0.04% increase, adding 0.54 points to close at 1,280.56 on Tuesday.
More than 660.3 million shares worth nearly VND16.2 trillion were traded on the southern exchange, down by 15% in volume and 12% in value compared to the previous session. Block deal transactions totaled 70.8 million shares valued at VND1.76 trillion.
VIC stole the limelight as it hit the ceiling price of VND45,100 per share, with 12.74 million shares traded, the highest volume since mid-February.
Other Vingroup-related stocks, VHM and VRE, saw more modest gains, with VHM up 2.2% to VND41,400 and VRE rising 1% to VND20,050. Trading volumes for VHM and VRE were 18.2 million and 15 million shares, respectively.
Real estate developer DXG was the most actively traded stock on the market, with more than 35.7 million shares changing hands.
On the Hanoi Stock Exchange, the HNX-Index was nearly flat, closing down 0.06 point, or 0.03%, at 238.91 points, with 73 winners and 81 losers. Trading volume on the northern exchange totaled over 44.5 million shares valued at VND890.3 billion.
