Bamboo Capital Group redeems over $15.7 million worth of bonds before maturity

Bamboo Capital Group (HoSE: BCG), a Vietnamese private multi-sector corporation, has completed the first phase of redeeming bonds worth VND397.16 billion ($15.72 million), in line witth its roadmap to buy back VND500 billion worth of bonds two years before maturity.

This is an important move by Bamboo Capital to efficiently manage financial obligations and optimize its capital strategy in the context of the company's improving business activities.

Previously, Bamboo Capital announced its plan to buy back the BCG122006 bond lot worth VND500 billion ($19.79 million) in two installments.

Accordingly, phase 1 would see bonds worth over VND397.16 billion ($15.72 million) redeemed on January 20, 2025. In phase 2, the group would buy back the remaining bonds worth nearly VND102.84 billion; the buyback is expected to be completed on April 20, 2025.

Bamboo Capital has completed the acquisition of all the bonds in phase 1 as planned. This batch of bonds marked the first time the group had issued bonds to the public. Public offerings require businesses to comply with more stringent regulations than private placements to ensure greater transparency and safety for investors.

Before the issuance, Bamboo Capital invited an independent credit rating unit to evaluate the issuer and it received positive credit results. The BCG122006 bond lot was also one of the successful bond issuances on the market three years ago.

The bonds have a term of five years and would be redeemed two years before maturity under a plan approved by the bondholders following negotiations.

According to its financial statement, Bamboo Capital's consolidated net revenue in the first nine months of the year reached VND3,238 billion ($128.14 million), up 14.3% over the same period in 2023.

The group's profit after tax in the nine-month period hit more than VND748 billion ($29.6 million), a four-folder increase compared to the same period in 2023.

Bamboo Capital is holding many strong growth opportunities thanks to new policies, especially in the field of renewable energy.

Regulations such as the amended Electricity Law, Decree 135/2024/ND-CP on encouraging the development of rooftop solar power, and Decree 80/2024/ND-CP on direct power purchase agreement (DPPA) mechanism create a positive outlook for the expansion of Bamboo Capital's energy business segment.

Moreover, the future completion of Power Plan VIII will contribute to creating a favorable legal framework, helping the group optimize its strategy on renewable energy development, which is one of the group's key business pillars.