Hung Thinh Investment acquires 2 trillion VND in early bond buybacks for up to 5 years.

On 12/03/2024, Hung Thinh Investment purchased the entire H39CH2229001 bond before maturity, valued at 2,000 billion VND. According to data from HNX, the bond was issued on 14/01/2022 and will mature on 14/01/2029, corresponding to a 7-year term. Therefore, the company has purchased the bond before maturity, up to 5 years.

This is a non-convertible bond, without warrants, with collateral, issued for individuals and professional organizations with an interest rate of 9% per year, interest payment every 12 months at the end of each period, and TPBank (HOSE: TPB) as the depository organization.

This early repurchase move has surprised many as Hung Thinh Investment was late in paying nearly 269.4 billion VND in interest at the period ending on 15/01/2024 for this bond.

At that time, the company stated that due to unfavorable developments in the financial and real estate market, affecting revenue, it was unable to arrange sufficient funds to pay the bondholders in full and on time according to the plan. At the same time, the company mentioned that it is planning to seek the opinions of bondholders regarding the extension of the bond interest payment period.

Hung Thinh Investment is no stranger to late bond interest payments, with a total of 11 unusual information disclosures about late payment of principal and interest on the HNX system from March 2023 until now.

After the repurchase, the company still has two outstanding bonds with a total value of nearly 904 billion VND, including the H39CH2225002 bond with a value of nearly 162 billion VND, issued on 29/08/2022, with a term of 24 months until 29/08/2024, and the H39CH2224003 bond with a value of over 742 billion VND, issued on 10/08/2022, with a term of 30 months until 10/02/2025.

Both bonds have a coupon rate of 10.5%, quarterly interest payment at the end of each period, and PSI Securities Joint Stock Company (HNX: PSI) as the depository organization.

Hung Thinh Investment Joint Stock Company was established on 20/03/2020, mainly operating in the real estate sector, with its headquarters in District 3, Ho Chi Minh City. The charter capital is 2,779 billion VND, and the legal representative is Mr. Nguyen Van Cuong.

According to the introduction on the website of Hung Thinh Group Joint Stock Company, Hung Thinh Investment is the unit that determines and plans the financial resources and implements investment projects of the Group in companies/businesses in various industries, not only supporting the development of the real estate market but also including banking, insurance, tourism, digital business platforms, education, health, sports, etc.

Hung Thinh Investment is also a major shareholder of a member of the Hung Thinh “ecosystem,” which is Hung Thinh Incons Joint Stock Company (HOSE: HTN). According to information from HTN’s 2023 management report, Hung Thinh Investment holds 12.5 million shares, equivalent to 14.03%.

As of the end of June 2023, the company’s equity capital was at 2,599 billion VND, with debts payable at 6,705 billion VND, 2.58 times the equity capital, including bond debts at 4,340 billion VND, 1.67 times the equity capital.

In the first half of 2023, Hung Thinh Investment incurred a loss of over 228.7 billion VND, while in the same period, it made a profit of over 23 billion VND, resulting in a negative return on equity (ROE) of 8.8%, instead of a slight positive 0.8% as in the same period.

Huy Khai