IPA Group (IPA) issues nearly 1,100 billion bonds to raise money to pay off debt

Issuing nearly VND 1,100 billion in unsecured bonds to restructure debt

IPA Investment Group Corporation (Code: IPA) has just approved the plan to issue private bonds in the second phase in 2024. The issued bond lot has code IPAH2429003, term of 5 years with interest rate of 9.5%/year. The maximum value of issued bonds is 1,096 billion VND.

It is worth mentioning that according to the announced purpose of using the capital, the entire amount collected will be used to pay off the debts of the 3 bond lots IPAH2124002, IPAH2124003 and IPAH2225001.

IPA Investment (IPA) is preparing to issue 1,000 billion unsecured bonds to raise money to pay off debt (Photo TL)

These three bonds have a total current outstanding value of VND2,300 billion, expected to mature at the end of this year and early 2025.

At the same time, the new bond lot coded IPAH2429003 was issued to restructure debt in the form of 4 no: non-convertible, no warrants, not a secondary debt of the enterprise and no collateral. This means that the risk level of the bond lot is relatively high.

This is not the first time in 2024 that IPA has raised capital from the bond channel. On June 27, 2024, IPA also successfully raised VND 735 billion from the bond lot coded IPAH2429002.

Escaped loss in Q2 thanks only to financial revenue and profit at affiliated companies

Regarding business activities, in the second quarter of 2024, the company recorded net revenue of VND 163.5 billion, an increase of 3.3 times over the same period. However, profit after tax was only recorded at VND 87.9 billion, a decrease of 42.6% over the same period.

Gross profit in the period reached VND86.6 billion, 4.1 times higher than the previous year. Gross profit margin also increased from 42.9% to 53%.

Financial revenue reached 34.7 billion VND, down by half compared to the same period. On the contrary, financial expenses increased 4 times, accounting for 134.9 billion VND. Sales expenses and business management expenses also accounted for 18 billion VND, corresponding to an increase of 30.7%.

The bright spot in IPA's financial picture comes from business activities at joint ventures and associates, recording revenue of VND129.1 billion, up 26.3% over the same period.

Meanwhile, in its core business, IPA is losing 66.4 billion VND. The company only escaped losses by recording profits from financial revenue and investments in associated companies.

IPA's accumulated revenue in the first 6 months of the year reached 1,080 billion VND, pre-tax profit reached 425 billion VND, equivalent to completing 49.2% of the yearly profit plan.

Bring half of assets invested in VNDirect, debt is almost as high as equity

The core business results are not very bright, PA recorded total assets of 8,714.6 billion VND, a slight increase compared to the beginning of the year. Of which, the amount of cash is only 60 billion VND. The company is increasing financial investment with a record of 540.8 billion VND, an increase of 46.4% compared to the beginning of the year.

Trading securities account for a large proportion of the company's assets. Also on the financial statement, IPA is investing up to VND428.7 billion in bonds coded EDI12301 of Trung Nam Energy Investment and Development JSC. Followed by VND48.9 billion in bonds coded CVT122008 of CMC JSC (Code CMG)

In addition, the company's long-term assets recorded nearly 7,000 billion VND, of which 4,372.2 billion VND is being invested in VNDirect Securities Company.

Regarding capital structure, IPA is recording total liabilities of 4,486.5 billion VND. Short-term debt accounts for 2,712 billion VND, long-term debt accounts for 1,425 billion VND. Total short-term and long-term debt is almost as high as equity.

Source: https://www.congluan.vn/tap-doan-ipa-ipa-phat-hanh-gan-1100-ty-dong-trai-phieu-de-lay-tien-tra-no-post306262.html