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GEG’s new bond issue, with the code GEGH2429003, consists of 2,000 bonds with a face value of VND 100 million each, equivalent to a total mobilization of VND 200 billion, with a term of 5 years, maturing on August 26, 2029.
The assets securing the bond issue include 61 million shares of TTC Duc Hue – Long An JSC, owned by GEG, together with all related rights and interests arising (including dividends paid in shares, bonus shares, except for cash dividends).
In addition, no later than 15 working days from the maturity date of the GEGB2124002 bond issue (no later than November 1, 2024), GEG or the guarantor will supplement more than 20.8 million shares of Gia Lai Hydropower JSC (GHC code) together with all similar rights and interests.
The bond issue offers a combination of fixed and floating interest rates. The first year applies a fixed interest rate of 9.5%/year; from the second year to the end of the fourth year, a floating interest rate with a margin of 3.9%/year will be applied, with a minimum of not less than 10%/year; in the fifth year, a floating interest rate with a margin of 5.4%/year will be applied, with a minimum of not less than 11.5%/year.
In fact, the issuance of new bonds by GEG aims to restructure a part of the value of the GEGB2124002 bond issue. This batch, issued on October 21, 2021, will mature on October 11, 2024. As of May 21, 2024, the value of the outstanding bonds is more than 521 billion VND. It is expected that the restructuring will be carried out from August to October 2024, with disbursement from the proceeds of the new bond issuance.
Excluding the newly issued batch, GEG also has 2 other circulating bond batches, GEGH2427002 and GEGH2429001, with a total value of 300 billion VND. Both batches of bonds were newly issued in June 2024, with terms of 3 and 5 years, respectively.
Gia Lai Electricity Joint Stock Company (GEG code) is one of the leading enterprises in the field of renewable energy in Vietnam and also one of the enterprises with the largest solar power capacity in the country.
Currently, the company owns and operates nearly 300 MWp of solar power. Along with that, GEG also owns 14 hydropower plants with a total capacity of 84 MW and has just completed 3 wind power plants with a total capacity of 125 MW in 2021.
Of which, GEG is the investor of Ia Bang 1 Wind Power Plant project (in Chu Prong district), one of the 4 projects in Gia Lai that the Ministry of Public Security has recently requested to provide dossiers.
The Ia Bang 1 Wind Power Plant project was approved in investment policy by the People’s Committee of Gia Lai province in September 2020. The plant has a designed capacity of 50 MW, built on an area of ​​more than 30.5 ha. The expected investment capital is 2,200 billion VND, implemented from the end of 2020 to October 2021. This project also enjoys incentives for land rent, corporate income tax, and non-agricultural land use tax, along with other incentives in accordance with current regulations.
In terms of business results, in the second quarter of 2024, GEG recorded revenue of VND 488 billion, up 1.9% over the same period, gross profit reached VND 212 billion, down 18.8% over the same period, and after-tax profit reached VND 1 billion, down nearly 84%. For the first 6 months of the year, after-tax profit reached VND 127 billion, up 15.6% over the same period, completing 47% of the plan for 2024.
