Vietnamese industrial property developer Becamex, backed by global private equity firm Warburg Pincus, plans to issue a further VND1 trillion ($42.6 million) in bonds this June to pay for maturing bonds.
This will be this year’s first bond tranche issued by Becamex, which is based in the southern industrial province of Binh Duong. The new bonds will be non-convertible and mortgaged, and will mature in 2025. The expected minimum coupon rate for the first four profit calculating times is 13% per annum, with three months each time.
At the end of the first quarter, the industrial developer’s total short-term and long-term loans had increased by 3.8% compared to the beginning of the year to approximately VND16.49 trillion (over $702 million), equal to 34% of all of its capital sources.
According to Becamex, its bond debtholders include BIDV Securities, Navibank Securities, Aviva Vietnam Life Insurance Co., Prudential Life Insurance Co., SmartInvest Securities, AIA Vietnam Life Insurance Co., Military Insurance Corp. (MIC), Vietcombank Fund Management Co (VCBF), and individuals.
Becamex recorded revenue of VND791.4 billion ($33.7 million) in the first quarter, down 44.8% year-on-year, and posted an after-tax profit of VND74.43 billion ($3.17 million), down 81%. This profit performance was equal to only 3.3% of its full-year target.
Becamex is listed on the Ho Chi Minh Stock Exchange (HoSE) as BCM. It reported an after-tax profit of VND1.72 trillion ($73.52 million) last year, of which VND1.15 trillion ($48.83 million) came from its joint ventures and associated companies. The figure was a 15% increase year-on-year and equivalent to 59% of its 2022 target. The corporation earned net revenue of VND6.51 trillion ($277.5 million) last year, up 6% and fulfilling 67% of the annual target.
Becamex’s joint ventures include BW Industrial - a major industrial and logistics real estate platform in Vietnam and a partnership with Warburg Pincus.
BW Industrial has about $2 billion in gross assets under management, according to the joint venture.
Another joint venture is VSIP Group, a partnership between Becamex and Singapore's leading conglomerate Sembcorp Industries. VSIP is a leading industrial park and township developer in Vietnam and an outstanding example of successful business cooperation between Vietnam and Singapore.