A trading office of F88 in Hà Nội. — VNA/VNS Photo

Pawnshop chain F88 said that it recently raised VNĐ100 billion (US$3.9 million) through a private bond placement, bringing the total value of outstanding bonds to VNĐ550 billion. 

F88 Investment JSC successfully issued two bond batches, with each valued at VNĐ50 billion. The first bond series, coded as F88CH2425002, was issued on May 3 with a 12-month maturity and a due date of May 3, 2025. Its interest rate is 11.5 per cent per annum.

The second bond batch, coded as F88CH2425001, was issued on April 19, also with a 12-month maturity and a due date of April 19, 2025. It also had an interest rate of 11.5 per cent per annum.

These bonds are non-convertible, non-warrant bonds without collateral and are offered to individuals and professional organisations.

In 2023, F88 experienced significant business results. Despite a substantial 2.1-fold increase in pre-provision profit compared to 2022, the company still posted a loss after tax of over VNĐ500 billion. In 2022, it recorded a profit of VNĐ208.1 billion.

The return on equity (ROE) plummeted from 31.6 per cent to a negative 30.1 per cent

As of June 30, 2023, F88's total liabilities amounted to nearly VNĐ2.3 trillion, which was 1.44 times higher than its equity. The company's equity stood at nearly VNĐ1.6 trillion, with a negative owner's capital contribution exceeding VNĐ80 billion.

Last year's loss was mainly attributed to provisions made for high credit risks in a challenging economic environment. The company commits to debt recovery efforts and market expansion to improve its business situation. — VNS