“VNDirect Seeks to Raise $10.6 Million Through Bond Issuance to Restructure Bank Debt”

VNDirect Joint Stock Securities Company (code: VND, HoSE) has just announced Resolution No. 803/2025/NQ-HĐQT dated August 22, 2025, on the plan to issue private placement bonds in 2025, batch 1.

Accordingly, VNDirect plans to issue bonds with the code VND32501 with a maximum volume of 2,500 bonds, par value of VND 100 million/bond, thus mobilizing an expected VND 250 billion.

The bonds are issued in the form of book entry and/or electronic data. These are non-convertible bonds, without warrants, unsecured, and establish the direct debt obligation of the issuing organization.

The bonds have a term of 1 year, with a fixed interest rate of 7.5%/year. Principal and interest are paid once at maturity or on the early repurchase date. The offering period is expected in the third quarter of 2025.

The purpose of issuing these bonds is to restructure a loan worth VND 550 billion at VietinBank Hanoi Branch, which will mature on September 4, 2025.

In terms of business results, in the second quarter of 2025, VNDirect recorded operating revenue of VND 1,698 billion, up 16% over the same period last year.

Proprietary trading accounted for half of the revenue, with nearly VND 834 billion, slightly up from the previous year. Thanks to reducing losses from financial assets at FVTPL, the net profit from this segment reached VND 378 billion, up nearly 39% over the same period.

Operating expenses increased slightly by 8.3% to VND 870 billion. The main reason is the increase in financial asset provisioning expenses, handling losses on bad debts, losses on financial assets, and borrowing costs for loans, which doubled to nearly VND 230 billion.

As a result, VNDirect achieved pre-tax profit and after-tax profit of VND 488 billion and VND 369 billion, up 14.5% and 7% respectively compared to the same period.

In the first half of 2025, VNDirect’s operating revenue reached VND 2,956 billion, up 4% over the same period. However, due to cost pressure, after-tax profit decreased by 22% over the same period to VND 751 billion.

VNDirect’s total assets as of the end of the second quarter of 2025 were over VND 47,919 billion, an increase of more than VND 3,600 billion compared to the beginning of the year.

Of which, cash and cash equivalents increased by 1.8 times compared to the beginning of the year to VND 1,587 billion. Term deposits exceeded VND 8,900 billion, up 60% from the beginning of the year. Loans increased by about VND 300 billion to VND 10,644 billion.

The FVTPL financial asset portfolio had a book value of VND 20,685 billion. Of which, bonds accounted for VND 12,139 billion, down VND 2,566 billion in a quarter. Certificates of deposit with more than VND 5,800 billion also decreased by VND 2,200 billion in a quarter.

In terms of stock investment, VNDirect invested VND 516 billion in VPB shares and VND 484 billion in HSG shares. However, both codes are currently making losses of VND 45 billion and VND 40 billion, respectively. Compared to the end of the first quarter of 2025, VND has invested in HSG instead of two bank codes, STB and CTG.

Notably, VNDirect had to make provisions of VND 342 billion for bad debts, up 77% in the first six months of the year. Along with that, the total uncollectible debt value for the Trung Nam group was VND 1,840 billion, an increase of VND 1,465 billion compared to the beginning of the year.

In terms of capital sources, short-term loans and debts accounted for VND 26,139 billion, an increase of more than VND 3,700 billion compared to the beginning of the year, mostly from banks and other credit institutions.