Thăng Long Thermal Power Issues Unsecured Bonds Amidst Financial Losses
According to the Hanoi Stock Exchange (HNX), Thang Long Thermal Power JSC has recently concluded the issuance of TLPCH2427001 bonds, raising nearly VND 900 billion with a 3-year maturity.
Specifically, the company issued 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. The issuance took place on August 22, 2024, setting the maturity date as August 22, 2027. Notably, these bonds are categorized as “triple-no” bonds, meaning they are non-convertible, non-warrant-attached, and unsecured.
In terms of interest rates, the TLPCH2427001 bonds offer a combined interest rate structure. For the first interest period, the applicable interest rate is set at 10% per annum. For subsequent interest periods, the rate is determined by taking the average of 12-month personal savings deposit interest rates in VND offered by four major joint-stock commercial banks, including Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank), Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV), Vietnam Joint Stock Commercial Bank for Industry and Trade (Vietcombank), and Vietnam Joint Stock Commercial Bank for Agriculture (Agribank). This rate is then adjusted by adding a margin of 3.5% per annum. To protect investors, the actual interest rate received in subsequent interest periods will not be lower than 10% per annum.
An Binh Securities JSC (ABS) serves as the bond registrar, and ASC Securities JSC is a related organization.
Thang Long Thermal Power reported a post-tax loss of VND 528 billion in the first half of this year.
Regarding its business performance, Thang Long Thermal Power posted a post-tax loss of VND 528 billion in the first half of 2024, compared to a loss of VND 458 billion in the same period last year.
In the 2022 financial year, the company reported a post-tax loss of VND 528 billion. However, surprisingly, in the 2023 financial year, it reported a post-tax profit of VND 122 billion.
As of June 30, 2024, Thang Long Thermal Power’s equity stood at VND 3,981 billion. Its debt-to-equity ratio was 2.46 times, corresponding to a debt balance of VND 9,794 billion. Out of this, the bond debt amounted to VND 677 billion.
According to HNX data, the company currently has two bond issues outstanding: 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 5-year maturity, and will mature on December 30, 2026. After 12 partial repurchases, the outstanding value of this bond issue now stands at VND 522 billion.
Established in August 2007, Thang Long Thermal Power JSC specializes in electricity generation, transmission, and distribution. The company is headquartered in Le Loi ward, Ha Long city, Quang Ninh province. Its chartered capital currently stands at VND 3,800 billion, and its legal representative is Mr. Nguyen Van Anh, the General Director.
