A real estate company announced to buy back 1,000 billion VND of bonds before maturity.

This corporation will carry out the repurchase by notification and direct agreement with bondholders. The capital for implementation will come from production and business activities and other sources of revenue.

Recently, DIC Corp has continuously made moves to buy back bonds before maturity. Specifically, on November 10, DIC bought back VND539 billion of bonds DIGH2124002 and VND1,061 billion of bonds DIGH2124003.

According to information from the Hanoi Stock Exchange, lot DIGH2124001 was issued by DIC on September 16, 2021, with a total value of VND 1,000 billion, a term of 3 years with an interest rate of 11%. Lot DIGH2124002 bonds were issued on September 30, 2021, with a total value of VND 1,000 billion, an interest rate of 11%, and were bought back for VND 539 billion. Lot DIGH2124003 bonds, issued on November 26, 2021 with a total value of VND 1,500 billion, a term of 3 years, an interest rate of 11%, were bought back for VND 1,061 billion.

However, according to the financial report for the fourth quarter of 2022, the interest rate of 11% is applied for the first two interest calculation periods. For the following periods, the interest rate is calculated by the interest rate of HDBank's 12-month individual savings deposit paid in arrears at the end of the term plus 4.25%/year.

These three bonds are secured by all assets, property rights and existing and future rights and benefits arising from investment, development, exploitation and consumption of products at the "Long Tan Urban Tourism Area" project with an area of 331.9 hectares in Long Tan commune and Phu Thanh commune, Nhon Trach district, Dong Nai province; DIG shares; and 80 land use rights and assets attached to land with an area of 42,381 m2 belonging to the Dai Phuoc Eco-tourism Urban Area project, Dai Phuoc commune, Nhon Trach district, Dong Nai province.

DIC Corp's business performance is not very positive in the context of the gloomy real estate market in the second half of 2022. Last year, the company recorded VND 1,909 billion in net revenue, down 25.7% compared to 2021. Profit after tax reached VND 151 billion, down 84.7%.

On February 28, the Government Inspectorate issued a decision to supplement the 2023 inspection plan, including inspection of compliance with legal regulations in equitization and divestment of state capital at DIC Corp.

The corporation then issued a press release in response stating that the State is currently planning to review all activities related to equitization and divestment of State capital in former State-owned enterprises. Not only DIC but many enterprises are subject to inspection and review by the Government Inspectorate. This is a regular activity of the Government Inspectorate as well as state management agencies.

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