Văn Phú – Invest has announced the public offering of 6.5 million bonds since November 2023. These are non-convertible, non-warrant bonds with collateral. The maturity of this bond is 36 months, with an interest payment every 6 months. The interest rate for the first 2 interest periods is 11% per year, while the following periods are floating interest rate (calculated based on the 12-month fixed deposit interest rate of Vietcombank, VietinBank, BIDV, Agribank + 4%, but not lower than 9.5% per year).
Văn Phú – Invest used 2 assets to secure the issuance of this bond. One is the assets attached to the land according to the land use rights certificates, ownership rights of houses, and assets attached to the land owned by TNHH MTV Đầu tư Hùng Sơn, and any rights and assets arising from and/or related to the aforementioned assets. The other is 16.5 million shares of VPI owned by Mr. Tô Như Toàn – Chairman of Văn Phú – Invest. The total value of the collateral assets is 1,155 billion VND, which is 1.77 times the value of the bond issuance.
On February 1, 2024, Văn Phú – Invest announced that all 6.5 million bonds have been sold, raising 650 billion VND. This can be seen as one of the most significant milestones of the corporate bond market in recent times and affirms the high credibility of Văn Phú – Invest. In reality, 100% successful issuance of public bonds by real estate businesses is very rare, as the conditions for public bond issuance are extremely strict and require a highly reputable company.
In 2023, this company achieved impressive business results with a net revenue of 1,877 billion VND, of which the real estate sector contributed 86% (equivalent to 1,619 billion VND) – a remarkable figure in the context of the real estate market facing various difficulties. Gross profit reached 1,310 billion VND, a 12% increase compared to the previous year, the largest in history. Deducting various expenses, Văn Phú – Invest reported pre-tax profit of 635 billion VND and net profit of 463 billion VND, marking the 7th consecutive year of sustained after-tax profit in the range of 300 – 500 billion VND. What’s more noteworthy is that the profitability of Văn Phú – Invest comes from its core business activities, rather than relying on financial activities or other sources of income such as asset liquidation or project/corporate transfer.
In terms of financial capacity, Văn Phú – Invest owns a high-quality asset portfolio. Total assets as of December 31, 2023 reached 12,532 billion VND, a 13% increase compared to the previous year. Receivables accounted for only 21.7% of total assets, reaching 2,720 billion VND, a 10% decrease. Meanwhile, inventory accounted for 29.5% of assets, reaching 3,701 billion VND, mainly production and business expenses at projects such as Song Khê – Nội Hoàng, The Terra – Bắc Giang… These are projects that Văn Phú – Invest is actively deploying with guaranteed progress and are being marketed.
In terms of capital, Văn Phú – Invest has a strong equity base, reaching 3,979 billion VND. The debt-to-equity ratio is 2.15 times. After the successful issuance of 6.5 million bonds, this ratio increased to 2.31 times. This is a normal level for the real estate industry in Vietnam, which has the characteristics of capital-intensive and is completely suitable for a company that is actively investing like Văn Phú – Invest.
Promising future with Vlasta – Thủy Nguyên
In addition to the aforementioned factors, another important factor that makes bond investors more confident in Văn Phú – Invest is the prospects for the recovery of the real estate business in 2024. In this context of scarce new projects and supply of products, Văn Phú – Invest has a significant advantage thanks to its ownership of clean land funds, project funds with legal compliance, and ready for launch.
One of the most anticipated projects of Văn Phú – Invest in 2024 is Vlasta – Thủy Nguyên (Hải Phòng). The project is located in a prime location, near the new administrative center of Hải Phòng City and the center of Thủy Nguyên district, with a total area of 32.5ha, consisting of high-class products such as villas (159 units), townhouses (840 units) with synchronized infrastructure and superior amenities.
As of December 2023, the project has completed the basic legal requirements and will fulfill other necessary conditions to proceed with the sale in the fourth quarter of 2024.
Văn Phú – Invest is focusing a lot on Vlasta – Thủy Nguyên. Part of the bond proceeds raised from the aforementioned offering will be used to develop this project.
In addition to Vlasta – Thủy Nguyên, the company is making progress with other major projects such as Vlasta – Sầm Sơn, The Terra – Bắc Giang… By the end of 2023, the “short-term customer prepayments” of Văn Phú – Invest reached 1,018 billion VND, which is the money customers paid for the company’s real estate products, representing future revenue.
