Coteccons plans to issue 14 million bonds with a face value of VND 100,000 per bond, a 3-year term, and a fixed interest rate of 9% per annum. These non-convertible bonds come without warrants, are unsecured, and hold equal priority in repayment. The company will pay interest semi-annually, while the principal will be repaid in full at maturity or upon early redemption. Both Coteccons and investors can redeem the bonds after 12 or 24 months.
The majority of the proceeds will be allocated to settle outstanding debts with partners and employees. Specifically, Coteccons intends to allocate VND 580 billion to settle a steel supply contract with Nhat Nam JSC, VND 370 billion to its subsidiary Unicons, VND 120 billion to Shinryo Vietnam Co., Ltd., VND 70 billion to UG Vietnam Mechanical and Electrical Co., Ltd., VND 60 billion to CTD Materials Co., Ltd., VND 50 billion to Truong Thinh Company, and VND 150 billion for employee salaries and bonuses.
Bond issuance is a rare move for Coteccons. The last time the company raised capital through this channel was in 2022, when it issued VND 500 billion in bonds with a 3-year term and a fixed interest rate of 9.5% per annum. At that time, the construction and real estate sectors faced significant challenges due to COVID-19, causing Coteccons’ profits to plummet from over VND 1 trillion to just a few dozen billion dong due to bad debt provisions.
According to its projected cash flow for 2025-2029, Coteccons expects to have sufficient resources to repay the bond principal and interest on time. The company forecasts pre-tax profits of VND 883 billion in fiscal year 2026, rising to VND 1.37 trillion in 2027, VND 1.65 trillion in 2028, and VND 1.92 trillion in 2029 – levels comparable to its peak years of 2017-2018.
| Coteccons forecasts steady profit growth until 2029 |
As of the end of fiscal year 2025 (June 30, 2025), Coteccons’ total assets were approximately VND 30 trillion, an increase of VND 6.8 trillion from the beginning of the year. This growth was primarily driven by significant increases in inventory (up VND 2.8 trillion to over VND 6 trillion) and short-term receivables (up VND 2.6 trillion to VND 14.8 trillion). The company maintains substantial cash and bank deposits exceeding VND 4 trillion, while short-term loans nearly doubled to nearly VND 3 trillion, with virtually no long-term debt. Total liabilities amount to over VND 20 trillion, and shareholders’ equity stands at approximately VND 9 trillion.
During a shareholder dialogue on September 20, Coteccons Chairman Bolat Duisenov emphasized that this bond issuance is not tied to a specific project. He explained that the capital raising aims to balance short-term and long-term capital while strengthening the company’s credit history. “Using credit instruments is normal for businesses; we can’t just hoard cash,” he stated.
Mr. Bolat Duisenov, Chairman of Coteccons, addresses shareholder questions during the September 20 dialogue. Photo: Coteccons
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Addressing concerns about receivables growing faster than revenue, the Chairman explained that this is typical for large-scale projects with rapid construction progress. All clients are financially robust companies, and Coteccons is closely monitoring cash flows. He anticipates significant improvement in the situation from late this year into early next year.
For fiscal year 2026, Coteccons targets record revenue of VND 30 trillion and after-tax profit of approximately VND 700 billion, representing increases of 21% and 50%, respectively, compared to the previous year. Deputy General Director Vo Hoang Lam noted that the backlog value in the first quarter could reach VND 45-50 trillion.
Coteccons targets record revenue of VND 30 trillion, after-tax profit of VND 700 billion
Coteccons seeks to improve profit margins and maintain dividends
– 15:18 14/10/2025
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