Inside a TNG Factory
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The bonds issued in this tranche have a four-year term with quarterly interest payments. The interest rate for the first four interest periods is set at 9.5% per annum and will then float, referencing the average savings rate of state-owned banks plus a margin of 3.5% per annum.
The collateral for the bonds is 10 million TNG shares owned by Mr.
While the debt-to-equity ratio will increase, the long-term capital raised from the successful bond issuance can help balance the capital structure of the enterprise.
According to the offering registration statement, TNG plans to use the proceeds from the bond issuance to pay employee salaries and purchase raw materials and services. This implies an increase in current assets.
As of the end of the third quarter of this year, TNG‘s net working capital was negative, with short-term assets of VND 2.31 trillion and short-term liabilities of VND 2.57 trillion. In addition to the bonds, the company, headquartered in Thai Nguyen, also has significant bank borrowings, mostly short-term.
In terms of financial performance, TNG recorded record results in Q3 2024 in terms of both revenue and profit.
