The new bond issuance, coded HDC12502, comprises 3,000 units with a face value of 100 million VND per unit, a 3-year term, and maturity in September 2028. The initial interest rate is set at 10.5% per annum, slightly lower than the previous batch’s 11%. Both issuances are non-convertible bonds, unsecured, and backed by assets.
According to Hodeco’s leadership, the proceeds from this private bond issuance will be allocated for two purposes: 200 billion VND to repay bank loans and 300 billion VND to acquire land use rights for the Phuoc Thang Urban Area project (Phuoc Thang Project).
Spanning approximately 54 hectares, the project is strategically located along the Dinh River and 3/2 Street, a gateway to the former Vung Tau City. Upon completion, it will relocate industrial facilities from the city center, increase housing supply, and enhance urban architecture. Hodeco anticipates acquiring an additional 15 hectares of land in 2025.
The Phuoc Thang Urban Area received its investment certificate from Ba Ria – Vung Tau Province in 2012, with a total capital of nearly 1.5 trillion VND. Initially planned for 593 villas, 612 townhouses, high-rise apartments (18-36 floors) with office spaces, and a 5-9 floor resettlement area, the project covered 75 hectares. However, 24 hectares designated for resettlement were later separated. To date, Hodeco has acquired and transferred ownership of over 2.5 hectares.
By the end of June 2025, the investment cost for the Phuoc Thang Project reached over 162 billion VND, a modest increase of 3 billion VND since the beginning of the year.
 Rendering of the Phuoc Thang Industrial and Urban Complex. Source: Hodeco
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Source: Hodeco’s 2025 Semi-Annual Reviewed Financial Report
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In addition to the private issuance, HDC is also launching a public offering of 500 billion VND in convertible bonds. These unsecured bonds have a 2-year term and a fixed interest rate of 10% per annum. Existing shareholders are entitled to purchase bonds at a ratio of 35,671 shares per 1,000 bonds, with transfer rights limited to one transaction.
The bonds will mandatorily convert into common shares in two phases: 40% of the total issuance after one year and the remainder at maturity. The fixed conversion price is 10,000 VND per share, with each bond convertible into 10 common shares. The primary goal of this issuance is to restructure bank debt.
Hodeco plans to offer convertible bonds to existing shareholders
– 07:10 24/09/2025
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