BCG Energy buys back 2,500 billion VND of bonds before maturity

BCG Energy Joint Stock Company will buy back all 2 bond lots with codes EBCCH2124002 and EBCCH2124003 with a total value of VND 2,500 billion. The buyback period is from December 15. Of which, the EBCCH2124002 bond lot worth VND 1,000 billion was issued on April 26, 2021, maturing on April 26, 2024. During the period of high interest rates in 2022, BCG Energy adjusted the interest rate for this bond lot to 14%/year for the interest calculation period from October 26, 2022 to April 26, 2023. The following interest calculation periods will return to the fixed rate of 10%/year.

BCG Energy buys back two bonds ahead of schedule

The second bond lot, coded EBCCH2124003, is worth VND 1,500 billion, issued on May 24, 2021 and matures on May 24, 2024. This bond lot has also been negotiated with bondholders and the interest rate applied to the interest calculation period from November 24, 2022 to November 24, 2023 has been adjusted to a fixed interest rate of 14%/year; the interest rate applied to the remaining periods is fixed at 10%/year.

BCG Energy said the purpose of buying back bonds before maturity is to ensure capital efficiency, in line with BCG Energy's financial situation and capital needs. As of the end of September 2023, BCG Energy's equity was VND 7,036 billion, total assets VND 19,577 billion; BCG Energy's liabilities were VND 12,541 billion, the debt/equity ratio is 1.78 times. In the first 9 months of 2023, BCG Energy achieved revenue of VND 894 billion.

After buying back all 2 bonds, BCG Energy's leverage ratio will decrease sharply to around 1x, which is a safe and significantly lower leverage level compared to other listed companies in the same industry. Buying back these 2 bond packages will help BCG Energy reduce its current financial costs and have room to mobilize capital, optimizing cash flow to develop projects in the plan.

These two bonds were raised to develop the Khai Long wind power project in Ca Mau. The Khai Long wind power plant is the largest renewable energy project in BCG Energy's current portfolio, with a total capacity of 300 MW and a total investment of VND18,000 billion. In phase 1, the Khai Long wind power plant project will build 17 wind power towers with a total capacity of 100 MW, with an estimated investment of more than VND6,300 billion.

Source: https://thanhnien.vn/bcg-energy-mua-lai-2500-ti-dong-trai-phieu-truoc-han-185231213141535534.htm