Gelex and Taseco prepare to issue 500 billion VND in bonds

From July 23, Vietnam Electrical Equipment Corporation (Gelex) is offering 400 billion VND in bonds with a term of 36 months, face value of 100 million VND/bond. These are non-convertible bonds and are secured by shares of Song Da Clean Water Investment Joint Stock Company (Upcom: VCW) - a clean water business providing water to the western area of Hanoi, with a large capacity in the Top 3 of the city. The collateral ratio is maintained at a minimum of 170% of the total value of outstanding bonds.

Gelex bonds have a nominal interest rate of 10%/year (for the first 2 years) and the average 12-month deposit interest rate of 4 state-owned banks + 3.5% for the 3rd year, investment yield of 10%/year, interest payment term of 6 months/time.

Prior to this issuance, Gelex also had 3 bond issuances in July 2020, raising 350 billion VND. Currently, Gelex's outstanding bond debt is about 3,900 billion VND.

Thang Long Air Services Joint Stock Company - Taseco also plans to offer 100 billion VND of Taseco 2020 bonds from August 6. Taseco 2020 bonds are non-convertible bonds with a term of 12 months, secured by shares of Taseco Air Services Joint Stock Company (Taseco Airs -HOSE: AST). The collateral ratio is maintained at a minimum of 180% of the total value of outstanding bonds, with a nominal interest rate of 10%/year and an investment yield of 9.5%/year (after tax).

Both bond issuances are distributed through SSI Securities Company and investors can sell to SSI at publicly listed prices when needed.

The corporate bond issuance channel has been bustling recently with nominal interest rates fluctuating around 9-11%. The most active participants include Sovico Group, Novaland, Trung Nam Group, a group of companies related to Vingroup or TNG Holdings...

According to cafef.vn