On December 31, 2024, Saigon Green Import-Export JSC (XNK Saigon Green) successfully issued VND 350 billion worth of bonds with a five-year maturity, due at the end of 2029. The interest rate for the first two periods is 12%/year; subsequent periods will be the sum of 4.5%/year and the reference interest rate on the interest rate determination date. The bonds are guaranteed by a payment guarantee contract dated December 30, 2024, between HDBank and XNK Saigon Green. HD Securities JSC is the bond registrar and custodian.
As of December 27, 2024, XNK Saigon Green was assigned a vnBB rating with a Stable outlook by Saigon Ratings. Established in 2010, the company primarily focused on import and export businesses. However, since 2019, it has shifted its attention to investing in and developing the An Phuoc Saigon residential project. Consequently, Saigon Ratings identified the company as operating under a real estate development business model. Currently, the company has a chartered capital of VND 240 billion, with Mr. Nguyen Danh Nam as Chairman of the Board and Mr. Vu Canh Toan as CEO.
The An Phuoc Saigon residential area (commercially known as An Phuoc Saigon Riverside) is located in Phuoc Lai commune, within the Can Giuoc district’s satellite urban area. The project’s detailed construction planning at a 1/500 scale was approved by the Long An Provincial People’s Committee in 2019 and adjusted in 2022. XNK Saigon Green is the project’s investor, covering an area of over 31.1 hectares with a planned population of 4,788 people. The project’s scale includes residential land (1,197 lots) of nearly 14.5 hectares, 2.6 hectares of service facilities, and 2.6 hectares of green space.
According to Saigon Ratings, the project has substantially completed land clearance and has obtained the necessary construction permits for the first phase. The company’s upcoming plans involve simultaneously working on phase 1 while finalizing legal procedures for phases 2 and 3.
The credit rating agency assessed that XNK Saigon Green has certain limitations in terms of resources, capabilities, and experience in real estate project implementation. The project’s capital structure comprises over 82% of investment capital that needs to be supplemented through increases in charter capital and corporate bond issuance in the coming periods. The company plans to increase its charter capital by VND 120 billion, thereby raising the owner’s equity ratio from 18.9% to 30% of the total investment (VND 1,200 billion).
The project’s cash flow is forecasted to be deficient in 2024, 2025, and 2028. The company’s ability to fully and timely meet its debt obligations depends largely on the success of its charter capital increase plan, the ability to utilize capital from contractors and buyers, and the accumulation of cash flow from project sales in previous years.
Additionally, the company expects to receive a commitment letter from a bank for the remaining capital of VND 1,215 billion required for the project.
– 14:03 10/01/2025
