Thanh Thanh Cong - Bien Hoa will issue corporate bonds privately with a total issuance value of 500 billion Vi...
Thanh Thanh Cong - Bien Hoa will issue corporate bonds privately with a total issuance value of 500 billion Vietnamese dong, with a par value of 100 million Vietnamese dong per bond; the bond term is 3 years from the issuance date.
Thanh Thanh Cong - Bien Hoa, a listed company (TTC AgriS, HOSE: SBT), has recently announced the resolution of the board of directors regarding the issuance of corporate bonds privately with a total issuance value of 500 billion Vietnamese dong.
Thanh Thanh Cong - Bien Hoa will issue corporate bonds privately.
Accordingly, the number of bonds offered for sale is 5,000 bonds, with a par value of 100 million Vietnamese dong per bond; the bond term is 3 years from the issuance date. The bonds have a fixed interest rate of 11% per annum for the first year; thereafter, the interest rate will not be lower than 9.5% per annum. This bond lot is expected to be issued in the first quarter of 2024.
The collateral for this bond lot is the right to use land at Plot No. 49, Map Sheet No. 1, Ward 2, Tay Ninh City, Tay Ninh Province, with a total appraised value of over 626 billion Vietnamese dong. It is noted that this real estate does not currently secure any other payment obligations. The consulting, issuance, and payment unit is Vietcap Securities Joint Stock Company; the asset management unit securing the assets is Techcombank.
The purpose of issuing bonds is to advance the entire 500 billion Vietnamese dong to AgriS Gia Lai Agriculture Joint Stock Company under the purchase contract signed on January 8, 2024, between the Company and AgriS Gia Lai Agriculture Joint Stock Company.
It is known that AgriS Gia Lai Agriculture Joint Stock Company is a subsidiary of Thành Thành Công - Biên Hoà Joint Stock Company; the voting percentage is 97.97%.
Previously, SBT has successfully issued multiple tranches of bonds, with the remaining principal balance of bonds exceeding 1,050 billion Vietnamese dong. Among them, the issuance in January 2021 aimed to increase capital by 700 billion Vietnamese dong; the issuance in June 2023 with a scale of 200 billion Vietnamese dong aimed to repurchase bonds issued earlier; the subsequent issuance in November 2023 with a scale of 500 billion Vietnamese dong aimed to contribute capital to the collaboration with Bien Hoa Consumer Goods Joint Stock Company.
In terms of business activities, in the last 6 months of 2023, SBT recorded net revenue of 13,386 billion Vietnamese dong, an increase of 9.4% compared to the same period. The cost of goods sold was 11,945 billion Vietnamese dong, up 8.2% compared to the same period last year.
During the period, the principal expense was over 1,138 billion Vietnamese dong, an increase of over 60%; selling expenses were 372.9 billion Vietnamese dong, up 17%; business management expenses were 318.9 billion Vietnamese dong, up 14% compared to the same period.
After deducting expenses, SBT reported after-tax income of 385.8 billion Vietnamese dong, a decrease of 1.4% compared to the same period in 2022.
According to the financial report, as of December 31, 2023, SBT paid in advance to sugarcane farmers over 2,000 billion Vietnamese dong, and to other parties over 4,649 billion Vietnamese dong.
Additionally, as of December 31, 2023, the short-term loan debt at banks was over 12,622 billion Vietnamese dong; long-term loan debt was over 1,315 billion Vietnamese dong. Shareholders' equity as of December 31, 2023, reached 11,100 billion Vietnamese dong, a slight increase of 5% compared to mid-year. Accordingly, the debt-to-equity ratio exceeded 2 times.
It is known that as of the end of September 2023, SBT had 18 direct subsidiaries, 12 indirect subsidiaries, and 4 associated companies, operating in various fields such as sugarcane cultivation, sugar production and trading, electricity production... forming a closed sugar value chain, with a total sugar production capacity exceeding 1 million tons/year, and holding a 46% domestic sugar market share.
Regarding capital mobilization, in early November 2023, SBT approved a plan to offer over 148 million shares to existing shareholders (ratio 5:1) at a price of 12,000 Vietnamese dong per share. These shares will not be restricted from transfer. The offering period is expected to be before December 31, 2024, and after approval by the State Securities Commission.
If the above offering is successful, SBT can raise over 1,777 billion Vietnamese dong, and the company's charter capital will increase to nearly 8,900 billion Vietnamese dong. Specifically, SBT plans to use 910 billion Vietnamese dong to settle contracts to purchase various types of sugar with Bien Hoa Consumer Goods Joint Stock Company.
SBT stated that this capital increase aims to enhance financial capacity, expand business activities, especially promote the F&B sector with nutritious beverage products to maximize the current sugar value chain and expand the value chain of other crops such as coconut, banana,... towards the goal of 60,000 billion Vietnamese dong in revenue by 2030.
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