Real Estate and Energy Tycoon Faces Over $3.3 Billion Loss: Who Are the Lenders Behind the Nearly $5 Billion Debt?

According to the upcoming Extraordinary General Meeting of Shareholders of Bamboo Capital Joint Stock Company (stock code: BCG), contrary to the pre-tax profit of VND 999 billion reported in the self-prepared 2024 report, BCG’s management forecasts that the audited results may record a consolidated loss equivalent to 20% of total assets as of the end of 2023, approximately VND 8,400 billion.

The primary reason stems from the company’s need to provision for investment impairments, bad debt, and other contingent liabilities following legal issues involving former senior executives.

This situation compels BCG to enter a comprehensive restructuring phase until 2030, aiming to stabilize operations and reduce debt pressure.

Where are the VND 25,700 billion in receivables?

The previously self-prepared report indicated that a significant portion of Bamboo Capital’s assets lies in receivables.

Unaudited 2024 financial statements reveal that the total value of short-term and long-term receivables as of the end of 2024 exceeds VND 25,700 billion (nearly USD 1 billion). This figure represents over 55% of total consolidated assets.

These receivables are concentrated among a group of familiar entities within the BCG ecosystem. For instance, receivables from BCG Khai Long 1 Wind Power JSC amount to over VND 1,900 billion, including nearly VND 1,660 billion in short-term business cooperation receivables (BCC) and VND 273 billion in short-term loans. BCC receivables from Tam Sinh Nghia Investment and Development JSC exceed VND 1,684 billion…

Notably, alongside corporate entities, Bamboo Capital’s asset structure also includes substantial prepayments and investment partnerships with individuals.

Financial statements record prepayments to sellers such as Ms. Nguyen Thi Bich Lan, totaling nearly VND 593 billion, and Ms. Nguyen Thi Ngoc Giau, exceeding VND 567 billion.

VND 11,500 billion in debt: Bonds account for 37%, VietinBank as the largest lender

As of the end of 2024, BCG’s total liabilities amount to over VND 25,129 billion (54% of capital), with financial debt exceeding VND 11,580 billion.

The debt structure reveals a heavy reliance on bonds, with outstanding debt of approximately VND 4,337 billion. Notably, the TCDH2227002 bond has an outstanding balance of VND 2,500 billion, maturing in 2027, secured by the Bai Chay project.

Additionally, the publicly issued BCG122006 bond (nearly VND 982 billion) is under pressure for early redemption, along with the TNECH2227001 bond (VND 357 billion) linked to the Krong Pa 2 solar power project.

In terms of bank credit, long-term loans secured by energy and real estate projects also constitute a significant portion. VietinBank is the largest creditor with an outstanding balance of over VND 2,092 billion (Phu My project), followed by a syndicated loan from DBS Bank Ltd (Singapore) totaling more than VND 1,649 billion.

At TPBank, the total outstanding debt is over VND 1,166 billion. Other creditors include Sembcorp Energy, Nam A Bank, and VPBank, with loans amounting to hundreds of billions of dong.