A seafood company has just raised thousands of billions of dong through bonds.

IDI Multinational Investment and Development Corporation (IDI) has just successfully issued 1,000 bonds, with a face value of VND 1 billion/bond on October 31, 2024. The bond lot has a total value of VND 1,000 billion and was distributed in just 1 day.

IDI Multinational Investment and Development Corporation (IDI) has just successfully issued 1,000 bonds, with a face value of VND 1 billion/bond on October 31, 2024. The bond lot has a total value of VND 1,000 billion and was distributed in just 1 day.

Notably, the interest rate for this bond lot is very low, only half that of other businesses and approximately the same as the interest rate on bonds issued by credit institutions.

IDI's bonds have a term of 8 years and are guaranteed by GuarantCo Ltd. This is the guarantor that has appeared in the bond issuances of Ho Chi Minh City Infrastructure Investment Corporation. GuarantCo is a multinational guarantee service company under PIDG (Private Infrastructure Development Group - PIDG). GuarantCo is sponsored by 5 G12 powers: the UK, Australia, Switzerland, Sweden and the Netherlands.

This bond lot is advised and issued by VCBS, and is also the representative of the bond owner.

Proceeds from this bond offering will be used to implement IDI's investment programs and projects, including the US Seafood Processing Factory Project (Phase 2) and the Sao Mai High-Tech Aquatic Breeding Center Project.

Notably, according to the announcement on HNX, the issuance interest rate of this bond lot is only 5.58% - much lower than the general level of other corporate bonds and only equal to the interest rate of bonds issued by credit institutions.

IDI is a subsidiary of Sao Mai Group Corporation (ASM), one of the largest pangasius processing companies in Vietnam. The majority of the company's revenue comes from the sale of goods, finished pangasius products and related products such as fishmeal, fish oil, and animal feed.

IDI has also just reported its business results for the third quarter of 2024 with after-tax profit reaching VND17.8 billion, down 23.88% year-on-year. IDI said that during the period, selling expenses increased sharply by 75% due to high international shipping costs compared to the same period last year. At the same time, financial revenue decreased by 61% due to lower deposit interest rates and because in the same period last year, the company recorded dividends from an affiliated company.

The issuance of bonds will increase IDI's debt burden. As of the end of the third quarter of 2024, IDI's debt was VND 4,894 billion, of which VND 4,657 billion was short-term debt (short-term financial leasing debt accounted for 88%). In the 9-month period of 2024, the interest expense that IDI had to pay was VND 213 billion, accounting for nearly 50% of the company's gross profit.

Source: https://baodautu.vn/mot-cong-ty-thuy-san-vua-huy-dong-duoc-nghin-ty-dong-qua-trai-phieu-d229477.html