IPA Investment Group Corporation (HNX: IPA) has just approved a plan to buy back two lots of bonds before maturity. Specifically, IPA plans to buy back VND300 billion worth of bonds coded IPAH2104002 and VND400 billion worth of bonds coded IPAH2124003 from June 26 to July 15, 2024. Thus, the total value of bonds bought back before maturity is VND700 billion.
Two bond lots IPAH2104002 issued in November 2021 and IPAH2124003 issued in December 2021, both worth VND 1,000 billion, with a term of 3 years, and a fixed interest rate of 9.5%/year.
Both of the above bonds are “4 no” bonds: non-convertible, non-warrant, non-secured and not a secondary debt of the enterprise. The organization representing the bondholders and the payment agent is VNDirect Securities Corporation.
In a contrasting move, on June 26, the IPA Board of Directors approved the private bond offering in multiple tranches. However, the specific issuance plan has not been announced.
Mr. Vu Hien - Chairman of the Board of Directors of IPA is assigned to decide on issues, transactions, signing, transferring, implementing agreements, contracts and other documents related to the issued bonds.
A few weeks ago, IPA also issued a bond lot worth 317 billion VND from the issuance of “4 no” bonds. This bond lot has the code IPA2429001, a term of 5 years, a fixed interest rate of 9.5%/year. The purpose is to repay the loan from Nam Can Tho Investment and Development Joint Stock Company.
As of March 31, 2024, IPA's total outstanding loans were VND3,981.5 billion, accounting for 44.6% of total capital. Of which, bond debt was VND3,600 billion, the rest was loans from related parties, bank loans and other personal loans.
Regarding the bond issuance, one of the issues that investors are interested in is IPA's investment in Trung Nam Renewable Energy JSC.
Specifically, according to the financial report for the first quarter of 2024, IPA recorded a new investment of VND 850 billion in contributed capital in Trung Nam Renewable Energy JSC, equivalent to 9.36% of capital.
Prior to this transaction, IPA had prepaid Trung Nam Energy Development and Investment JSC (Trung Nam EDI) the entire purchase price of Trung Nam Renewable Energy shares under the share transfer contract dated December 29, 2023. IPA said it would receive the transfer of 85 million Trung Nam Renewable Energy shares with a par value of VND10,000/share.
Also in the first quarter of 2024, IPA invested more money in Trung Nam EDI bonds with code EDI12301, thereby increasing the original investment price from nearly 290 billion VND at the beginning of the year to nearly 456 billion VND as of March 31, 2024.
A few months before the deal took place, Trung Nam EDI had pledged 162.9 million shares of Trung Nam Renewable Energy at VNDIRECT. Not only that, in early 2024, Trung Nam EDI continued to pledge nearly 185.2 million shares of Trung Nam Renewable Energy at VNDIRECT.
At the 2024 IPA Annual General Meeting of Shareholders, Ms. Pham Minh Huong - Member of the Board of Directors of IPA said that for IPA, this is an opportunity for the company to consider expanding investment in the renewable sector. Ms. Huong commented that the information about Trung Nam being subject to inspection and review is a policy risk of the State.
"We joined VNDIRECT because we believe that renewable energy is the industry of the future, and Trung Nam's risks are not related to the company's assets and projects. The energy sector inherently brings cash flow so that we can confidently invest in developing other service sectors. That is why IPA chose Trung Nam to issue and guarantee bonds," said a member of the IPA Board of Directors.
Ms. Huong also added that this was “fate” and that she did not intend to do so at first. If the investment goes well, the company will consider expanding its investment in the energy sector .
Source: https://www.nguoiduatin.vn/ipa-chi-700-ty-dong-mua-trai-phieu-truoc-han-a670645.html
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