DIC Corp successfully raises 600 billion VND from bonds at an interest rate of over 11% per year

DIC Corp's board of directors is also considering issuing private bonds with a maximum total value of 2.1 trillion dong.


DIC Corp (Ticker: DIG) has successfully raised VND 600 billion through a private bond issuance. Specifically, from December 29, 2023, to January 30, DIC Corp offered 6,000 bonds with the code DIGH2326001 and a face value of VND 100 million each. The bonds have a term of 3 years and a coupon rate of 11.25% per year.

Earlier, on December 27, 2023, DIC Corp’s Board of Directors approved a plan to issue private bonds with a maximum total value of VND 2,100 billion. These bonds do not come with warrants and are guaranteed by a credit institution. The face value of each bond is VND 100 million. The issuance is expected to take place from the fourth quarter of 2023 to 2024, with three tranches planned.

The proceeds from the bond issuance will be used by DIC Corp to invest in three projects: Long Tan Tourist Urban Area, A5 Apartment Building in the central area of Chi Linh, and Phuoc Hai Resort Complex Phase 2 and 3.

As of December 31, 2023, DIC Corp’s total payable debt is VND 8,935 billion. Of which, the financial borrowing of the company decreased by VND 733 billion to VND 3,111.6 billion, almost equivalent to the amount of bonds cleared in the past year (bond debt decreased from VND 1,862 billion to VND 1,142 billion).

In terms of business performance, the company recorded revenue of nearly VND 434 billion, an increase of 11% compared to the same period last year. Thanks to a significant reduction in costs, the company achieved an after-tax profit of over VND 66 billion, a sharp increase of 1,385% compared to the fourth quarter of 2022.

For the whole year 2023, DIC Corp achieved VND 1,027.5 billion in net revenue, a decrease of 46% compared to 2022. Of which, the real estate business contributed the largest share with over VND 545 billion, accounting for 53% of the revenue structure; in addition, there are also construction and service supply segments.

In terms of financial activities, DIC Corp generated an extraordinary revenue of VND 180.5 billion from the sale of investments, while a significant reduction in costs helped the after-tax profit for 2023 increase by 18% to VND 176 billion.

As of December 31, 2023, DIC Corp’s total assets amounted to VND 16,888 billion. Notably, the cash and cash equivalents item is 10 times higher than the beginning of the period, reaching VND 2,307 billion. This is also the highest deposit amount ever for DIC Corp.

In other developments, the item “customer deposits for real estate purchases” unexpectedly increased to VND 2,250.5 billion. In addition, short-term prepayment from customers is also high, at VND 1,765 billion, an increase of VND 300 billion compared to the start of the year.

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