Thăng Long Thermal Power Issues Unsecured Bonds Amidst Financial Losses
Thăng Long Thermal Power reported a post-tax loss of VND 528 billion in the first half of this year.
According to the Hanoi Stock Exchange (HNX), Thang Long Thermal Power Joint Stock Company has recently issued a bond lot, TLPCH2427001, valued at nearly VND 900 billion, with a three-year term.
The company offered 8,995 bonds in the domestic market, each with a face value of VND 100 million, resulting in a total issuance value of VND 899.5 billion.
Notably, these bonds are “triple-non”: non-convertible, non-warrant-attached, and unsecured. The TLPCH2427001 bonds were issued on August 22, 2024, with a maturity date of August 22, 2027.
In terms of interest rates, the TLPCH2427001 bonds feature a combined interest rate structure. For the first interest calculation period, the applicable interest rate is set at 10% per annum. For subsequent periods, the interest rate will be determined by taking the average of 12-month personal savings deposit interest rates in Vietnamese Dong offered by four major joint-stock commercial banks, including Vietnam Foreign Trade Joint-Stock Commercial Bank (Vietcombank), Vietnam Joint-Stock Commercial Bank for Industry and Trade (VietinBank), Vietnam Joint-Stock Commercial Bank for Industry and Trade (VietinBank), Vietnam Joint-Stock Commercial Bank (Indovina Bank), and the Vietnam Bank for Agriculture and Rural Development (Agribank), plus a margin of 3.5% per annum. Investors are guaranteed to receive an interest rate of no less than 10% per annum for the subsequent periods.
An Binh Securities Joint Stock Company (ABS) serves as the bond registrar, and ASC Securities Joint Stock Company (ASC) is a related organization.
Regarding the company’s financial performance, Thang Long Thermal Power reported a post-tax loss of VND 528 billion for the first half of 2024, compared to a loss of VND 458 billion in the same period last year. For the fiscal year 2022, the company posted a post-tax loss of VND 528 billion but surprisingly reported a post-tax profit of VND 122 billion for 2023.
As of June 30, 2024, Thang Long Thermal Power’s equity stood at VND 3,981 billion. The debt-to-equity ratio was 2.46, corresponding to a debt balance of VND 9,794 billion. Of this, VND 677 billion was in bonds.
Currently, Thang Long Thermal Power has two bond lots in circulation: TLPCH2427001 with a value of VND 899.5 billion and TLPCH2126001 with a value of VND 1,125 billion. The TLPCH2126001 bonds were issued on December 30, 2021, with a five-year term and a maturity date of December 30, 2026.
After twelve partial repurchases prior to the maturity date, the outstanding value of the TLPCH2126001 bond lot is now VND 522 billion.
Thang Long Thermal Power Joint Stock Company was established in August 2007 and specializes in electricity production, transmission, and distribution. Its headquarter is located in Le Loi ward, Ha Long city, Quang Ninh province. The company’s charter capital currently stands at VND 3,800 billion, and its legal representative is General Director Nguyen Van Anh.
