Many businesses apply for bond extension

Due to the difficult production and business situation, many issuers have proposed extending the maturity of current bond lots to reduce financial burden.

A series of bonds invested by VISC simultaneously requested for extension

Specifically, Thu Do Import-Export Investment and Trading JSC has requested a 2-year extension for bond code TDECH2325001, which is a non-convertible bond without warrants. This bond lot is worth 40 billion VND, VISC is the 100% purchaser. Initially, this bond lot was issued in 2023 and has a term of 2 years, due on March 9, 2025, however, the issuer has requested a 2-year extension from the maturity date, meaning the maturity date will be extended to March 9, 2027.

VISC has approved holding this bond code for another 2 years with the investment strategy of continuing to invest to enjoy fixed income and secondary trading to enjoy price differences.

It is known that the interest rate for code TDECH2325001 during the extended period is 9%/year.

The same thing happened to the bond lot HDECH2325001 issued by HDE Distribution JSC and HTMCH2325001 issued by Ha Thanh Production and Investment Trading JSC.

Both bonds are worth VND45 billion and VISC is the bond owner holding 100% of the bonds, maturing on March 6, 2022-5 and March 9, 2025, respectively. Both issuers requested a 2-year extension with an interest rate of 9%/year during the extension period, with the maturity date pushed up to March 2027. Previously, the interest rate of all 3 bonds in the first 2 years was 12%/year.

Regular reports also reveal some of the financial health of these issuers.

HDE Distribution JSC said that in the first 6 months of 2024, HDE's profit reached 164.9 million VND, with a very low ROE ratio (0.066%). At the end of June 2024, the company's equity was 248.6 billion VND. Currently, the company has only 1 batch of bonds in circulation, with outstanding bonds of 45 billion VND. Previously, in 2023, after-tax profit was 277 million VND, down 37% compared to the previous year.

Ha Thanh Production and Investment Trading Joint Stock Company had equity as of the end of June 2024 of VND 59.1 billion. Meanwhile, the Debt/Equity ratio was up to 7.83 times, equivalent to Debt up to more than VND 460 billion. Outstanding bonds were VND 45 billion, this company also only had 1 batch of bonds in circulation. With high debt, thin capital, Ha Thanh's after-tax profit was also insignificant when in the first 6 months of the year, the company only reached VND 98.4 million, down 37% over the same period last year. Previously, in 2023, the company also only achieved VND 179 million in profit, down 61% compared to 2022.

Meanwhile, Thu Do Import-Export Investment and Trading Joint Stock Company only recorded a profit of 215 million VND in the first 6 months of 2024. Meanwhile, the owner's equity is 26.2 billion VND and the debt is 24.29 times the debt, or approximately 636 billion VND.

Businesses seek ways to restructure bonds

Not only bonds owned by VISC asked for maturity extension, in February 2025, many businesses also made similar moves.

At the end of February, TNL Investment and Asset Leasing JSC requested to extend the maturity of 20 bond lots issued in 2020, from TNL.BOND.01.2020.01-20, with the maturity extended for each lot by 2 years, meaning the maturity date is pushed to 2027.

According to a report on HNX, TNL Investment and Asset Leasing JSC currently has 78 outstanding bond lots, each lot worth 40-50 billion VND.

In the first 6 months of 2024, TNL only achieved 402.7 million VND in profit after tax, down 13% compared to the same period last year. In 2023, the company made a profit of over 1.4 billion VND, and before that, in 2022, the company even lost 659 million VND.

Instead of requesting an extension of the term, Dong Nai Traffic Construction Joint Stock Company (DGT) requested an extension of the interest payment period. In February 2025, DGT issued a Resolution of the Board of Directors on asking for written opinions of bondholders to extend the interest payment period of DGTH2224001 bond, period 9, dated February 22, 2025.

DGTH2224001 is a bond lot issued by DGT from February 2022 with an initial term of 24 months, with a total value of VND 350 billion, currently outstanding VND 239.5 billion. It is known that bondholders have agreed to extend the interest payment period of the 9th bond to February 23, 2026.

Source: https://baodautu.vn/hang-loat-doanh-nghiep-xin-gia-han-trai-phieu-d251159.html