This week, 33 enterprises announced dividend closures. Of these, 21 companies paid dividends in cash, 9 in stock, 2 in additional issues, and 1 in a combined dividend.
Bond No. 3
Vietnam Industrial and Commercial Bank (VietinBank – stock code: CTG) has just approved the issuance plan, capital use plan, and debt repayment plan from public bond issuances in 2024.
Accordingly, VietinBank plans to offer 80 million bonds in two phases, with an offering price equal to the par value of VND 100,000/bond. All are non-convertible bonds, not attached to warrants, unsecured, and meet the conditions to be counted as Tier 2 capital of VietinBank under current legal regulations.
VietinBank will offer 80 million bonds in two tranches.
Each phase will offer 30 million bonds with an 8-year term (bond lot code CTG2432T2) and 10 million bonds with a 10-year term (bond lot code CTG2434T2). The total offering value for the two phases corresponds to VND 8,000 billion.
In the event that phase 1 does not sell all the offered volume as expected, the unsold portion will be transferred to phase 2, corresponding to each bond term. The issuance time for phase 1 bonds is expected to be in the third and fourth quarters of 2024, phase 2 is expected in the fourth quarter of 2024 and the first quarter of 2025.
VietinBank will distribute and offer bonds directly to investors through its branches and transaction offices nationwide. The interest rate for the bonds is a floating rate, calculated as a percentage per annum.
The amount of VND 8,000 billion raised will be used to increase operating capital, Tier 2 capital, and ensure safe operating ratios as prescribed by the State Bank. It will also be used for lending to the economy in the field of gas production and distribution (VND 4,000 billion), manufacturing industry (VND 2,000 billion), and other sectors (VND 2,000 billion).
Southeast Asia Commercial Joint Stock Bank (SeABank – stock code: SSB) has just approved a resolution on the implementation of the plan to issue shares to pay dividends, issue shares to increase capital from owned capital sources, and issue shares under the ESOP program to increase charter capital.
Specifically, SeABank will issue 329 million shares to pay 2023 dividends and issue 10.3 million shares to increase capital from owned capital sources. The expected issuance time is in the third quarter. SeABank will also issue 45 million ESOP shares in 2024.
SeABank increases charter capital to VND 28,800 billion.
Upon completion of the above share issuances, SeABank’s charter capital will increase by VND 3,843 billion, from VND 24,957 billion to VND 28,800 billion.
In addition, SeABank also plans to issue a maximum of 120 million shares in the form of private placement or issue shares to convert debt to continue to increase its charter capital to VND 30,000 billion. This plan will be implemented in 2024 or 2025.
Buy DGW shares at 1/6 of the market price
Vietcap Securities Joint Stock Company (stock code: VCI) has just approved the plan to issue shares to increase capital from owned capital sources, expected to be implemented in the third and fourth quarters of 2024.
Accordingly, VCI plans to issue more than 132 million bonus shares at a ratio of 10:3, meaning that for every 10 shares held, shareholders will receive 3 additional shares. These shares will not be restricted from transfer. The source of capital for the issuance will come from undistributed post-tax profits, capital surplus, and the reserve fund for supplementary charter capital according to the 2023 audited financial statements.
After the issuance, Vietcap Securities’ charter capital will increase from VND 4,419 billion to VND 5,744.7 billion.
Digiworld Corporation (stock code: DGW) has just approved a resolution on the implementation of the plan to issue 2 million ESOP shares to employees at a price of VND 10,000/share. The expected implementation time is in the third and fourth quarters of 2024.
Digiworld employees will be able to purchase ESOP shares at a preferential price, which is 1/6 of the market price.
Compared to the market price of DGW shares on HoSE on July 5, which was VND 64,500/share, employees will be able to purchase ESOP shares at a price that is only 1/6 of the market price. ESOP shares are restricted from transfer for 1 year.
Noi Bai Cargo Services Joint Stock Company (stock code: NCT) will close the list of shareholders to receive the remaining 2023 dividend in cash at a rate of 50%, meaning that for every 1 share held, shareholders will receive VND 5,000. The payment date is August 8. With nearly 26.2 million shares currently in circulation, NCT will spend approximately VND 131 billion on this dividend payment. As of March 31, Vietnam Airlines holds 55.1% of NCT’s charter capital and will receive approximately VND 72 billion.
On July 10, Hai Phong Paint Company Limited (stock code: HPP) will close the list of shareholders to pay a 20% cash dividend. With nearly 8 million shares currently in circulation, HPP is expected to spend approximately VND 16 billion on this dividend payment.
Promising Revival of the Corporate Bond Market
The corporate bond market in 2024 is expected to be more vibrant due to low interest rates, expanded supply, and improved investor confidence.
Nearly 7.4 trillion VND of TPDN bought back in January 2024, over 279 trillion VND due for repayment throughout the year.
According to data compiled by the Vietnamese Bond Market Association (VBMA) from HNX and SSC, as of February 2, 2024, there were two private corporate bond issuances totaling VND 1.65 trillion and one public bond issuance totaling VND 2 trillion in January 2024.
Almost 7.4 trillion VND of TPDN acquired in January 2024, over 279 trillion VND due to mature throughout the year
According to data compiled by the Vietnam Bond Market Association (VBMA) from HNX and SSC, as of February 2nd, 2024, there have been two private placement bond issuances worth 1.65 trillion VND and one public offering worth 2 trillion VND in January 2024.
HAG’s approved plan to issue VND 1,300 trillion of private shares
During the 10-day sales period, HAGL is required to submit a report along with confirmation from the bank where the account is opened to verify the amount of money raised from the sales campaign to the State Securities Commission.
