(BCG) On December 31, Bamboo Capital (BCG) was granted the Certificate for a Public Offering (No. 327/GCN-UBCK) by the State Securities Commission of Vietnam. This is the first time BCG has issued bonds to the public.
Compared to a private placement issuance, a public issuance is subject to the imposition of stricter regulatory requirements, thus ensuring more transparency and safety for investors.
BCG was previously assessed by FiinRatings, which is division of FiinGroup specializing in credit ratings, with positive credit ratings as an issuer. FiinRatings assessed BCG’s business risk profile in the medium and long term to be relatively stable due to the diversity and ability to efficiently rotate the investments in BCG’s portfolio.
BCG is going to issue 500 billion dong worth of non-convertible bonds, without either warrants or collateral. Five million bonds with the par value of 100,000 VND/bond are offered , the code is BCGH2126001.
The bonds issued by BCG have a combination of fixed and floating interest rates. Interest payment period is (every) 6 months from the date of issue. The interest rate for the first two interest periods is fixed at 11.5%/year.
The interest rates for the following periods after the first two are calculated as floating interest rates, each equals to the reference rate plus a margin of 6%/year. The term to maturity is 5 years with a total value of VND 500 billion. They are distributed through an issuing agent, Saigon – Hanoi Securities Corporation (SHS).
The minimum trading volume for each retail investors is 1,000 bonds (equivalent to VND100 million); institutions, 10,000 bonds (equivalent to VND1 billion). The time for registration and payment is from January 1 to January 20, 2022.
This bond issuance is meant to mobilize working capital to finance solar power, rooftop power, and real estate projects; for mergers, acquisitions and project development cooperation.
For instance, BCG is expected to lend VND 247 billion to Dong Thanh 2 Wind Power Company Limited and VND 253 billion to BCG Wind Soc Trang Joint Stock Company in order to invest in ongoing wind power projects in Tra Vinh and Soc Trang.
Mr. Pham Minh Tuan – Vice Chairman of BCG said: “This is the first time that BCG has issued bonds to the public. Like the subsidiaries, we do not mobilize bonds for vague goals, but to directly invest in specific projects. Therefore, cash flow is strictly managed. Moreover, capital costs, interests and interest payment periods, have been carefully calculated in advance to ensure the benefits to investors.”