Issuing nearly 1,100 billion VND of unsecured bonds to restructure debt
IPA Investment Group Corporation (Code: IPA) has just approved the plan to issue private bonds in the second phase in 2024. The issued bond lot has the code IPAH2429003, a term of 5 years with an interest rate of 9.5%/year. The maximum value of the issued bonds is VND 1,096 billion.
It is worth mentioning that according to the announced purpose of using the capital, the entire amount collected will be used to pay off the debts of the 3 bond lots IPAH2124002, IPAH2124003 and IPAH2225001.
IPA Investment (IPA) is preparing to issue 1,000 billion unsecured bonds to raise money to pay off debt (Photo TL)
These three bonds have a total current outstanding value of VND2,300 billion, expected to mature at the end of this year and early 2025.
At the same time, the new bond lot coded IPAH2429003 was issued to restructure debt in the form of 4 no's: non-convertible, no warrants, not a secondary debt of the enterprise and no collateral. This means that the risk level of the bond lot is relatively high.
This is not the first time in 2024 that IPA has raised capital from the bond channel. On June 27, 2024, IPA also successfully raised 735 billion VND from the bond lot coded IPAH2429002.
Escaped loss in Q2 thanks only to financial revenue and profit at affiliated companies
Regarding business activities, in the second quarter of 2024, the company recorded net revenue of VND 163.5 billion, an increase of 3.3 times over the same period. However, profit after tax was only recorded at VND 87.9 billion, a decrease of 42.6% over the same period.
Gross profit in the period reached VND86.6 billion, 4.1 times higher than the previous year. Gross profit margin also increased from 42.9% to 53%.
Financial revenue reached VND34.7 billion, down by half compared to the same period. On the contrary, financial expenses increased fourfold, accounting for VND134.9 billion. Sales expenses and business management expenses also accounted for VND18 billion, corresponding to an increase of 30.7%.
The bright spot in IPA's financial picture comes from business activities at joint ventures and associates, recording revenue of VND129.1 billion, up 26.3% over the same period.
Meanwhile, in its core business, IPA is losing VND66.4 billion. The company only escaped losses by recording profits from financial revenue and investments in associated companies.
IPA's accumulated revenue in the first 6 months of the year reached 1,080 billion VND, pre-tax profit reached 425 billion VND, equivalent to completing 49.2% of the annual profit plan.
Investing half of assets in VNDirect, debt is almost as high as equity
Core business results are not very bright, PA recorded total assets of VND 8,714.6 billion, a slight increase compared to the beginning of the year. Of which, cash is only VND 60 billion. The company is increasing financial investment with a record of VND 540.8 billion, an increase of 46.4% compared to the beginning of the year.
Trading securities account for a large proportion of the company's assets. Also on the financial statement, IPA is investing up to VND428.7 billion in bonds coded EDI12301 of Trung Nam Energy Investment and Development JSC. Followed by VND48.9 billion in bonds coded CVT122008 of CMC JSC (Code CMG)
In addition, the company's long-term assets recorded nearly 7,000 billion VND, of which 4,372.2 billion VND is invested in VNDirect Securities Company.
Regarding capital structure, IPA is recording total liabilities of VND4,486.5 billion. Short-term debt accounts for VND2,712 billion, long-term debt accounts for VND1,425 billion. Total short-term and long-term debt is almost as high as equity.
Source: https://www.congluan.vn/tap-doan-ipa-ipa-phat-hanh-gan-1100-ty-dong-trai-phieu-de-lay-tien-tra-no-post306262.html
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