Thăng Long Thermal Power Issues Unsecured Bonds Amidst Financial Losses
Thăng Long Thermal Power reported a post-tax loss of VND 528 billion in the first half of this year.
According to the Hanoi Stock Exchange (HNX), Thang Long Thermal Power Joint Stock Company has recently issued a bond offering, TLPCH2427001, raising nearly VND 900 billion with a 3-year maturity.
The bond issuance comprised 8,995 units, each with a face value of VND 100 million, resulting in a total issuance value of VND 899.5 billion. The bonds were offered in the domestic market and are set to mature on August 22, 2027, three years after their issuance on August 22, 2024.
Notably, these bonds are categorized as “triple-no” bonds, meaning they are non-convertible, do not come with warrants, and are not backed by any collateral.
In terms of interest rates, the TLPCH2427001 bonds feature a combined interest rate structure. For the first interest period, the applicable interest rate is set at 10% per annum. For subsequent interest periods, the rate will be determined by taking the average of 12-month personal savings deposit interest rates in Vietnamese Dong from four major joint-stock commercial banks, including Vietnam Foreign Trade Joint-Stock Commercial Bank (Vietcombank), Vietnam Joint-Stock Commercial Bank for Industry and Trade (VietinBank), Vietnam Joint-Stock Commercial Bank for Industry and Trade (VietinBank), Vietnam Joint-Stock Commercial Bank (Indovina Bank), and the Vietnam Bank for Agriculture and Rural Development (Agribank), plus a margin of 3.5% per annum. Investors are guaranteed to receive an interest rate of no less than 10% per annum for the subsequent interest periods.
An Binh Securities Joint Stock Company (ABS) serves as the bond registrar, and ASC Securities Joint Stock Company (ASC) is a related organization.
Regarding the company’s financial performance, Thang Long Thermal Power reported a post-tax loss of VND 528 billion for the first half of 2024, compared to a loss of VND 458 billion in the same period last year. In the 2022 financial year, the company posted a post-tax loss of VND 528 billion but surprisingly reported a post-tax profit of VND 122 billion for 2023.
As of June 30, 2024, Thang Long Thermal Power’s equity stood at VND 3,981 billion. The debt-to-equity ratio was 2.46, corresponding to a debt balance of VND 9,794 billion. Of this, VND 677 billion was in bonds.
Currently, Thang Long Thermal Power has two bond issues outstanding: TLPCH2427001 with a value of VND 899.5 billion and TLPCH2126001 with a value of VND 1,125 billion. The latter was issued on December 30, 2021, with a 5-year maturity, and will mature on December 30, 2026. After 12 partial repurchases, the outstanding value of TLPCH2126001 is now VND 522 billion.
Established in August 2007, Thang Long Thermal Power specializes in electricity production, transmission, and distribution. The company is headquartered in Le Loi, Ha Long City, Quang Ninh Province, and has a charter capital of VND 3,800 billion. Its legal representative is General Director Nguyen Van Anh.
