Many businesses continue to buy back bonds before maturity

Thanh Thanh Cong - Bien Hoa Joint Stock Company (stock code SBT) has just announced the Board of Directors' Resolution on approving the plan to buy back a part of SBTB2124001 bonds. This bond lot was issued on January 26, 2021, with a term of 3 years. Accordingly, the total number of bonds expected to be bought back is 4.5 million bonds with an implementation ratio of 4.5/7 (owners of 7 bonds will have the right to resell 4.5 bonds).

The bonds have a face value of VND100,000 and will be bought back at nearly VND102,011, equivalent to a total buyback value of over VND459 billion. The record date for bondholders with the right to resell is May 22. Currently, the total number of bonds in circulation is 7 million, equivalent to a total value of VND700 billion.

Nhiều doanh nghiệp tiếp tục mua lại trái phiếu trước hạn - Ảnh 1. — Many businesses continue to buy back bonds before maturity

Similarly, Son Ha International Joint Stock Company (stock code SHI) has just announced information on continuing to buy back bonds before maturity with code SHIH2124001. Specifically, SHI bought back 28 billion VND at par value out of the 238 billion VND outstanding of this bond lot. The remaining volume after the buyback is 210 billion VND. This is a 3-year bond lot, issued in July 2021. The bond interest rate is fixed at 11%/year for the first two interest periods; the interest rate for the following periods is equal to the total reference interest plus 4.5%/year, or equal to 11% if the reference interest is less than 6.5%/year.

Previously, in mid-January 2023, SHI also bought back 42 billion VND out of the 280 billion VND outstanding of the above bond lot, thereby reducing the remaining volume after the buyback to 238 billion VND. Thus, since the beginning of the year, SHI has bought back 70 billion VND of the SHIH2124001 bond lot before maturity.

Hoa Binh Construction Group Corporation (stock code HBC) also bought 10 billion VND out of 94.6 billion VND of bond lot HBCH2225002 before maturity. The bond lot was issued on October 31, 2022, has a term of 3 years and will mature on October 31, 2025. The face value of the bond is 100 million VND. The remaining volume after purchase is 84.6 billion VND. This is also the second time in 2023 that HBC has bought back bonds before maturity. Previously, on January 17, the company bought back 250 billion VND out of 500 billion VND of bond lot HBCH2225001 issued on January 27, 2022, with a term of 3 years.

Or Kinh Bac Urban Development Corporation (stock code KBC) has just announced the Resolution of the Board of Directors approving the finalization of the list and plan to buy back the public bond lot code KBC121020 before maturity. The KBC121020 bond lot was issued on June 24, 2021 with a term of 2 years, maturing on June 24, 2023. Accordingly, the expected volume of bonds to be bought back at par value is 7.5 million bonds, equivalent to the par value of VND 750 billion (accounting for 50% of the total value of outstanding bonds). The buyback ratio is 2:1 (owning 2 bonds is entitled to resell 1 bond). Payment date is May 24. Buyback interest rate is 10.8%/year. Bondholders can register to resell to KBC from May 11-15.

Previously, KBC bought back all KBCH2123002 bonds maturing on June 3, 2023, with a total value of VND 1,000 billion; bought back all KBCH2123004 bonds maturing on November 11, 2024, with a total value of VND 1,000 billion...

According to a report by VNDirect Securities Company, the early bond buyback activity slowed down somewhat in April with more than VND4,833 billion worth of bonds. The total value of early buybacks in the first four months of 2023 reached more than VND39,388 billion.

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