Nam Long Investment Joint Stock Company (NLG on HoSE) has recently approved the issuance of 950 billion VND in private placement bonds.
The bond offering comprises two lots with a total volume of 9,500 bonds, a face value of 100 million VND per bond, and a tenor of 36 months. One lot is valued at 500 billion VND, while the other is worth 450 billion VND.
The bonds issued by Nam Long are non-convertible, non-warrant-attached, secured, and establish the direct debt obligation of the issuing organization. The issuance is expected to take place in Q3 2024.
The bond interest rate will be a combination of fixed and floating rates. For the first four interest periods, the fixed interest rate is set at 9.78% per annum, while for the remaining periods, a floating rate will apply, calculated as the sum of 4.73% and the reference interest rate for the relevant interest period.
As for the bond issuance guarantee, the 500 billion VND lot is secured by nearly 34.5 million shares of Southgate JSC owned by Nam Long. The value of the collateral on the issuance date is 1 trillion VND, equivalent to 29,000 VND per share.
On the other hand, the 450 billion VND lot is backed by 31.03 million shares of Southgate JSC owned by Nam Long. The collateral value is 900 billion VND, based on an appraisal report issued by iValue Valuation Company Ltd. on March 25, 2024.
However, the bond collateral may be supplemented, withdrawn, or replaced during the circulation period with Nam Long VCD JSC shares owned by NLG, NLG’s capital contribution to Watefront Dong Nai Co., Ltd., and other assets owned by Nam Long to secure Nam Long’s payment obligations related to the bonds. At the time of issuance, Nam Long-owned Southgate shares are prioritized for use.
Regarding the intended use of proceeds, Nam Long plans to utilize the entire 950 billion VND to repay the full principal amount due on the NLGB2124001 (issuance value of 500 billion VND) and NLGB2124001 (issuance value of 450 billion VND) bonds.
Both bond lots were issued on September 06, 2021, with a tenor of 36 months. The expected capital utilization period is Q3 2024.
Source: Nam Long
In Q2 2024, Nam Long reported a nearly 74% decline in revenue compared to the same period last year, reaching approximately 252.3 billion VND. Net profit amounted to nearly 160 billion VND, a decrease of over 30% year-on-year, although it showed significant improvement compared to the 65 billion VND loss in Q1 2024.
For the first six months of 2024, NLG recorded a 62% year-on-year decrease in net revenue, totaling nearly 457 billion VND. Real estate business and service revenue reached nearly 372 billion VND (mainly from the Southgate and Izumi projects) and 64 billion VND, respectively. NLG’s net profit decreased by 63% year-on-year to nearly 131 billion VND.
As of the end of June 2024, Nam Long’s outstanding bond debt stood at approximately 3,600 billion VND.
