BCG Land gets two-year extension for $104 mln bonds

BCG Land has successfully extended the maturity of its BCLCH2124001 coded bonds valued at VND2.5 trillion ($104 million) by another 24 months.

The company, a subsidiary of private conglomerate Bamboo Capital Group (BCG), reached an agreement with bondholders to extend the maturity to 60 months from the initial 36 months. With the agreement, the bonds will expire on March 31, 2026.

Other terms of the bonds do not change. The notes carry a fixed coupon rate of 11% per year for the first four payments and a reference rate equal to the average rate of 12-month deposit interest rates at TPBank plus four percentage points per year for the remaining payments, but not below 11% per annum.

The collateral for the bonds includes shares of those who own the King Crown Park project in Ho Chi Minh City; revenues, rights, and benefits arising from or related to the project; land use rights of the project’s land plot; and assets and other solutions owned by the issuers or supplemented by third parties.

In August, the Vietnam Securities Depository and Clearing Corporation (VSDC) granted a securities registration certificate and issued the ticker symbol to BCG Land, according to the Bamboo Capital Group (BCG).

BCG Land has registered to list 460 million shares worth VND4.6 trillion ($191.67 million) and the VSDC accepted the deposit of the shares from August 23. BCG Land is set to become listed on the unlisted public company market UPCoM as BCR from the fourth quarter of 2023.

BCG Land was established in March 2018 with a charter capital of over VND200 billion ($8.33 million). After several consecutive capital hikes, this has risen to VND4.6 trillion ($188.7 million).

As of July 27, the two major shareholders of BCG Land were Bamboo Capital Group with 62.1% of the charter capital; and Tracodi, a subsidiary of Bamboo Capital Group, with 9.43%. Small shareholders held the remaining 28.47%.

Bamboo Capital said the listing of BCG Land on the UPCoM aimed to mobilize capital for projects, conduct merger & acquisition (M&A) activities and extend its portfolio to industrial real estate and resorts. The goal is to become a top five realty developer in Vietnam in five years (2023-2027).

Strong foothold

Despite its late establishment in 2018, BCG Land has acquired a major foothold in the market with notable projects like the Casa Marina Resort and Casa Marina Premium in the central province of Binh Dinh; and Malibu Hoi An and Hoian D’or in the central province of Quang Nam.

Its VND616-billion ($25.3 million) King Crown Village has so far delivered 17 villas.

BCG Land is now focused on deploying King Crown Infinity, a luxury realty project in Thu Duc city, Ho Chi Minh City; Malibu Hoi An, a 10.3-hectare complex of condotels and villas in Quang Nam province; and Hoi An D’or, a 24.4-hectare resort complex in Quang Nam province.

The firm plans to implement commercial, residential, and industrial real estate projects covering 421 hectares to diversify its portfolio soon.

With BCG Land implementing three key projects covering 36 hectares, the list of people pre-paying for its properties is set to become bigger and bigger, especially when they near completion and delivery.

As of end 2021, such customers had made payments of VND247.1 billion ($10.1 million), or 1.9% of the total capital. The figure rose to VND918.8 billion ($37.7 million) by end-2022 and VND1.72 trillion ($70.4 million) by June 30, 2023, or 12.89%. Such payments will be recorded as revenue as soon as the firm completes and hands over projects to customers.

As a result, BCG Land’s total inventory value grew to VND3.57 trillion ($146.3 million) as of June 30, including VND1.62 trillion ($66.2 million) related to the Malibu Hoi An project and VND1.11 trillion ($45.3 million) related to the Hoi An D’or project.

Besides, the company is cooperating with other firms on implementing projects worth VND5.61 trillion ($229.9 million).

BCG Land’s cash flow improved from negative in 2020-2022 to a positive VND591.7 billion ($24.3 million) in the first half of 2023, evidencing the firm’s strong performance after making robust investments in previous years.

Its ongoing projects are expected to boost the firm’s cash flow and enable it to record profits soon.