The Board of Directors of Viet Dragon Securities Corporation has just approved a plan to issue private corporate bonds for the first time in 2023 and repurchase bonds.

The securities firm plans to release 4,100 private corporate bonds with a par value of VND100 million (US$4,214.96) a bond. They are non-convertible bonds, without warrants and collateral. If the issuance is successful, the company is expected to obtain VND410 billion.

The term of the batch is one year, with a fixed interest rate of 10.15 per cent a year. The interest is paid once a month while principal is paid once on the maturity date.

The security company plans to use money collected from the offering to restructure debts, including paying principal of due bonds and/or bank loans and to use in savings.

On January 19, Viet Dragon successfully issued VND202.7 billion of one-year bonds, expiring on December 28.

It has issued a total of 26 batches of bonds from April 2021 to March 2023, mobilising more than VND4.7 trillion, mostly in 2022.

Regarding the bond repurchase plan, depending on the business situation and capital capacity, the company will buy back a part of the issued bonds before maturity at the request of the bondholders.

It manages to redeem up to 50 per cent of the issued bonds after six months from the issuance date with the redemption interest rate not exceeding 9 per cent a year.

On the stock market, Viet Dragon’s shares are traded on the Ho Chi Minh Stock Exchange (HoSE). — VNS