Kinh Bac City Development Holding Corporation – Joint Stock Company (coded KBC-HOSE) announces the resolution of the Board of Directors on issuing bonds KBCH2426001.
Accordingly, KBC has approved the issuance of KBCH2426001 bonds worth VND 1,000 billion in Q3 2024. The bonds have a term of 24 months, a fixed interest rate of 10.5%/year, and interest payable semi-annually. These are non-convertible bonds, without warrants, secured, and without subordinate debt of the issuer.
The purpose of the issuance is to restructure the current debts of Saigon – Bac Giang Industrial Joint Stock Company and Hung Yen Investment and Development Group Joint Stock Company.
Earlier, in June, the KBC Board of Directors approved the plan to borrow VND 500 billion from its subsidiary, Trang Cat Urban Development One-Member Limited Company, in the form of unsecured loans within 2 years.
This amount serves production and business activities. KBC stated that the interest rate of the loan is agreed upon in each loan contract, and interest is paid once when the loans are settled.
It is known that KBC’s revenue and after-tax profit after minority interests in the first half of 2024 reached VND 1,000 billion (-77% over the same period) and VND 151 billion (-92% over the same period), respectively. The profit decrease compared to the same period was mainly due to the significant reduction in industrial park land transfers to 15 hectares in the first half of 2024 (compared to 132 hectares in the first half of 2023 and compared to 111 hectares in VCSC’s 2024 forecast) as KBC has a limited land fund ready for lease, while the company’s upcoming industrial park projects have not yet started construction.
VCSC sees a potential downward adjustment to VCSC’s 2024 forecast as the progress of land leasing up to now is slower than VCSC’s expectations, although a detailed evaluation is needed.
In the first half of 2024, KBC recorded new real estate sales of about 17 hectares in Nam Son Hap Linh Industrial Park (NSHL), including 14 hectares from Foxconn and 3 hectares from Talway. VCSC estimates the backlog of unpaid orders at the end of Q2/2024 to be 39 hectares, including 33 hectares from NSHL Industrial Park and 6 hectares from Quang Chau Industrial Park. Meanwhile, KBC’s remaining industrial land available for lease in operating IPs, including NSHL & Tan Phu Trung IPs, is about 167 hectares as of the end of Q2/2024.
In the residential segment, KBC handed over approximately 16,000 square meters of floor area at the social housing project in Nenh Town (Bac Giang, with an area of 12.6 hectares and a total of 7,000 apartments; started selling in August 2023).
There were no new developments in KBC’s key township projects, including Trang Cat and Phuc Ninh, in Q2/2024. Meanwhile, Trang Due 3 IP is still awaiting government approval for the investment policy.
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