Major Vietnamese contractor Hoa Binh to raise $133 mln for bank, supplier payments

Hoa Binh Construction Group, one of Vietnam's top contractors, plans a private placement for up to 347 million shares, with an estimated total value of VND3.47 trillion ($133.4 million).

The plan was approved at the company’s 2025 AGM on Friday, with 60% of the proceeds earmarked for repaying bank loans and the remainder for fulfilling construction contracts and settling supplier payments.

This is a strategic move to ease financial pressure, while also paving the way for the implementation of the company’s business strategy.

In 2024, Hoa Binh (UPCoM: HBC) reported revenue of VND6.42 trillion ($246.7 million), falling short of its target and down 15% compared to 2023. However, net profit reached VND959 billion ($36.8 million), setting a new high for the company.

The achievements were attributable to effective debt collection efforts, provision reversal, asset liquidation, and the sale of shares in its subsidiaries.

Notably, equity grew from VND93 billion to nearly VND1.75 trillion ($67.3 million), an 18-fold increase from the beginning of the year.

Since November 2024, Hoa Binh has seen a resurgence, securing 14 contracts valued at over VND8.5 trillion ($326.7 million).

The AGM also approved the 2025 business plan, targeting revenue of VND9 trillion ($345.9 million) and a net profit of VND360 billion ($13.8 million).

The meeting elected a new board of directors for 2025-2029 with six members, along with a three-member supervisory board.

A notable change was the adjustment in the management structure, which now includes the AGM, the board of directors, the supervisory board, and the CEO.

According to Hoa Binh’s audited consolidated financial statements for 2024, the company still faces substantial debt, with provisions nearing VND2 trillion ($78 million).

Hoa Binh’s HBC shares closed Friday at VND6,000 ($0.23) per share.