UP Securities wants to issue 300 billion VND in "3 no" bonds

UP Securities Corporation (UPSC) has just announced the Resolution of the Board of Directors on approving the plan to offer bonds to the public.

Accordingly, this securities company plans to issue a maximum of 3 million bonds to the public equivalent to a face value of 300 billion VND. These are non-convertible bonds, without warrants, and without guarantees. The bonds will mature in 2027 and have a fixed interest rate of 9%/year.

Expected offering time is in the third - fourth quarter of 2025, after being granted a certificate of registration for offering by the State Securities Commission.

UPSC said that all proceeds from the issuance will be used to increase the scale of working capital and supplement business capital. Specifically, with 300 billion VND, the company plans to use 150 billion VND to supplement capital for self-trading and underwriting activities, and 150 billion VND to supplement and provide capital for margin trading lending activities.

UPSC has a charter capital of 300 billion VND. As of the end of the second quarter of 2025, UPSC's total assets were at 824 billion VND, a sharp increase compared to the beginning of the year (334.4 billion VND).

Most of UPSC's assets are in short-term assets (VND 776 billion), in which investments held to maturity (HTM) account for the main value. If at the beginning of the year, this item did not receive value, by mid-year, UPSC increased HTM assets to VND 514.6 billion and all of these items are term deposits with a term of 6-12 months, with interest rates from 4.5% - 6%/year.

Meanwhile, UPSC's FVTPL assets and loans are still quite modest, with values of VND17.1 billion and VND80.6 billion, but have increased significantly compared to the beginning of this year.

Looking at the asset structure and capital sources of UPSC, it can be seen that the amount of money deposited in the bank by UPSC is money borrowed from the bank. The equity of UPSC did not increase significantly in the first 6 months of the year, however, UPSC increased its debt from 14.9 billion VND at the beginning of the year to 499 billion VND at the end of the second quarter.

Specifically, in February 2025, UPSC borrowed VND 500 billion from Loc Phat Commercial Joint Stock Bank, with the purpose of supplementing government bond trading, treasury bills and margin lending activities.

By June 2025, through the extraordinary General Meeting of Shareholders, this securities company continued to request approval to increase the credit limit from VND 500 billion to VND 1,000 billion at LPBank for the above purposes and the maximum credit limit of VND 500 billion at BIDV to borrow for the purpose of investing in Government bonds, margin activities and stock trading.

UPSC has had many changes in recent times when the structure of major shareholders and the board of directors have changed. At the end of July, this securities company made a new move when it approved the investment to buy 4.5 million shares of Unicorn Asset Management JSC with a purchase price not exceeding VND10,000/share, equivalent to a maximum value of VND45 billion. The capital transferor is Mr. Dinh Van Hiep - a member of the Board of Directors who was just appointed last June.

Source: https://baodautu.vn/chung-khoan-up-muon-phat-hanh-300-ty-dong-trai-phieu-3-khong-d361408.html