In the context of pressure on cash flow, Becamex IDC plans to issue a maximum of 1,500 billion dong of bonds this year. In mid-November, the company is due to settle more than 2,000 billion dong of bonds.
Board of Directors of Industrial Investment and Development Corporation – JSC (Becamex IDC, Code: BCM) has approved the plan to issue up to VND 1,500 billion of individual bonds this year.
The implementation and detailed issuance plan are assigned by the Board of Directors to the Chairman Nguyen Van Hung.
On November 17, Becamex IDC has 4 lots of bonds with a total value of VND 2,000 billion maturing at the same time.
In particular, the bondholders include: Joint Stock Commercial Bank for Investment and Development of Vietnam (VND 1,080 billion), Indovina Bank Limited (VND 500 billion), Vietnam – Russia Joint Venture Bank (VND 400 billion) and JSC First Resources and Development (20 billion VND).
Previously, at the Annual General Meeting of Shareholders on June 26, Becamex IDC Board of Directors submitted and was approved by the General Meeting of Shareholders to issue shares to existing shareholders with the total expected revenue of over VND 3,100 billion. Implementing 2020-2021.
The entire amount expected to be collected will be used for financial restructuring, including final settlement of the aforementioned 4 batches of bonds and the remainder to supplement working capital. If the above issuances are successful, the company’s charter capital will increase to VND 12,420 billion.
Also at the meeting, Chairman Nguyen Van Hung said that the company is facing difficulties in deciding to raise capital from the State agencies, leading to the financial situation of the company is also difficult, namely, pressure debt power and bank interest.
This year’s plan, Becamex IDC targets revenue of over VND 6,000 billion and profit after tax of VND 931 billion, a decrease of 40% and 65% compared to the results achieved in 2019.
In the first three months of this year, Becamex IDC’s net profit was nearly 311 billion dong, down 48% compared to the same period in 2019. This is also the lowest profit (by quarter) Becamex IDC has been gained since the first quarter / 2018.
Not only reduced interest, but cash flow of Becamex IDC also recorded a negative of over 96 billion dong in the first quarter of this year, while the same period was 110 billion dong.
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