Vietnamese power firm BCG Energy and its partner Hanwha Energy have concluded a new timeline for the former to pay the latter part of an overdue bond.
The deadline has been set for June 30 this year, the Vietnamese firm stated on Friday, whilst explaining that financial conditions remain stable. The announcement follows a Hanoi Stock Exchange (HNX) document issued on February 21 which listed companies that were late to make bond payments, including BCG Energy.
BCG Energy, part of Vietnamese conglomerate Bamboo Capital Group, issued a $5 million convertible bond to Hanwha Energy in September 2019, and this was used to develop renewable energy projects in Vietnam as part of the duo’s strategic partnership. The bond was intended to mature after three years, i.e. on September 4, 2022, with Hanwha given the option of converting it into shares.
BCG Energy said that towards the end of the term, Hanwha Energy decided not to convert, and the two sides agreed to partially change the bond into a debt to be settled by June 30, 2023.
BCG Energy CEO Pham Minh Tuan said his company had partially paid out to Hanwha Energy, and the two sides had agreed upon the above-mentioned terms to settle the unpaid $3 million.
“This agreement has not been reported enough, and that’s why there are some unnecessary concerns about our financial health. Instead, we’re operating normally,” he stressed.
BCG Energy is implementing rooftop solar projects and completing its solar power and offshore wind projects in its portfolio, he added.
As of December 31, 2022, BCG Energy’s equity stood at VND4,500 billion (over $189 million), and its total renewable assets were more than VND20,826 billion ($875.2 million).
The company’s 2022 net revenue was more than VND1,064 billion ($44.7 million), and profit after tax was more than VND258 billion ($10.8 million).