IPA Investment Group Corporation has continuously issued bonds in the past six months to repay old bonds that have matured.
IPA Investment issues trillions of dong in bonds to roll over debt
IPA Investment Group Corporation has continuously issued bonds in the past six months to repay old bonds that have matured.
IPA Investment Group Corporation (IPA) has just completed a private corporate bond offering on November 5, 2024.
In 1 day, IPA sold out 6,000 bonds, with a total face value of 600 billion VND. With a term of 5 years, this batch of bonds will mature on November 5, 2029.
Notably, similar to the bond lots issued during the year, this is a "four-zero" bond lot as it is non-convertible, not accompanied by warrants, has no collateral and is not a secondary debt of the enterprise.
Previously, in the issuance plan, IPA said it would use the proceeds to buy back/pay off the bonds IPAH2124002 and IPAH2124003 before maturity. The restructuring of these bond debts is quite urgent as the maturity date is November-December 2024.
In 2024, IPA issued many decisions related to bonds. According to the company's latest plan for issuing individual bonds in 2024, in 2024, IPA will issue 5 individual bonds with a total maximum value of VND 3,210 billion.
Since the beginning of the year, IPA has issued 4 bonds, including 2 in June 2024 with a total value of VND 1,052 billion, 1 in August 2024 with a value of VND 1,096 billion and 1 just took place on November 5 as mentioned above. The total value of bonds that IPA has issued in the past 6 months is VND 2,748 billion.
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| IPA Investment currently has 7 outstanding bonds. |
IPA's Q3/2024 financial report shows that as of September 30, 2024, IPA's liabilities were VND4,317 billion, of which short-term loans and financial leases accounted for VND1,392 billion, and long-term financial leases accounted for VND2,517 billion. Thus, IPA's financial debt accounts for 45% of the company's total capital.
Regarding the loan through bonds, IPA's financial report recorded the outstanding bond debt from IPA and its subsidiary, Bac Ha Energy JSC. Of which, IPA's bonds were VND3,408 billion, while Bac Ha Energy's bonds accounted for VND445 billion, with total bond debt of about VND3,853 billion, accounting for the majority of IPA's financial debt.
In the first 9 months of 2024, IPA's interest expense accounted for VND284 billion, although it decreased by 12% compared to the same period last year, it is still a burden for IPA. On average, the company has to spend more than VND1 billion a day to pay interest. This interest expense is even 1.7 times the gross profit IPA achieved in the past 9 months.
Thanks to good growth in financial revenue, the company's 9-month after-tax profit still reached VND322 billion, up 116% over the same period last year.
Source: https://baodautu.vn/dau-tu-ipa-phat-hanh-hang-nghin-ty-dong-trai-phieu-de-dao-no-d230016.html
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