“FPT Securities Seeks VND 2.5 Trillion Bank Loan for Working Capital”

FPT Securities Joint Stock Company (FPTS, Stock Code: FTS, HoSE: FTS) has recently announced the Chairman of the Board’s decision regarding borrowing and pledging assets as collateral for loans at Vietnam International Commercial Joint Stock Bank (VIB).

Specifically, the total short-term borrowing limit is VND 2,500 billion. Of this, the limit for unsecured borrowing is VND 1,500 billion, and the limit for secured borrowing is also VND 1,500 billion. The maximum borrowing period for each loan agreement is 12 months from the date of disbursement.

It is understood that FTPS intends to borrow to meet the need for additional working capital for the company’s operations. Specifically, this includes investing in and trading stocks, providing margin loans and pre-sale stock loans, investing in and trading government bonds, local bonds, and other working capital purposes, in accordance with VIB’s regulations and the law.

The interest rate will be determined at the time of disbursement and will be subject to VIB’s interest rate regulations for each period, in accordance with the law.

The assets securing FPTS’s borrowing obligations at VIB include unsecured loans, deposit agreements, negotiable instruments, and other assets approved by VIB. The company’s revenue, profits, and other sources of income will be used to fulfill the repayment obligations for the above loan.

In another development, FPTS recently announced the registration for the sale of 1.19 million MSH shares of Song Hong Garment Joint Stock Company.

The transaction aims to fulfill proprietary trading purposes from June 3 to July 2, using matching and/or agreed-upon orders.

If the transaction is completed, FPTS’s ownership will decrease from 9.59 million shares, representing a 12.79% stake, to 8.4 million shares, representing an 11.2% stake in May Song Hong’s charter capital.

In the first quarter of 2025, FPTS reported operating revenue of VND 312 billion, up 4.3% from the same period last year.

Of this, the lending segment contributed the most to revenue with nearly VND 174 billion, an increase of 34%, while revenue from financial assets classified as FVTPL stood at VND 88 billion. Brokerage revenue, on the other hand, halved to just over VND 37 billion.

During this period, operating expenses increased by 34% to nearly VND 122 billion, with provisions for financial assets, handling of bad debts and financial asset impairments, and borrowing costs for loans totaling VND 77 billion. As a result, FPTS’s net profit was nearly VND 153 billion, down 8% compared to the first quarter of 2024.

As of March 31, 2025, FPTS’s total assets exceeded VND 10,706 billion, a 10% increase from the beginning of the year.

The largest component of the asset structure was loans, amounting to nearly VND 7,612 billion, an 8% increase over three months. Of this, VND 7,000 billion was for margin loans.

In terms of capital sources, FPTS had borrowings of nearly VND 6,088 billion, an 11% increase from the beginning of the year, all of which were bank loans.