Phat Dat Real Estate Development JSC is trying to complete its bond debt repayments this year as it prepares to begin 2024 with major changes, CEO Bui Quang Anh Vu tells The Investor.
You’ve said that Phat Dat aims to complete its bond repayments before maturity. How will zero bond debt help the firm? And will you issue bonds in the future?
Phat Dat will use money given by professional investors in a private placement to zero the bond debts by the end of this year. The move will improve the firm’s figures and reduce financial pressures, preparing it for upcoming developments. Phat Dat is on a clear path for the next phase of development and solving bond issues will make it easier to grab upcoming business opportunities.
In addition to bank loans, the bond market is a strong medium- and long-term market channel for firms to call for investment. This market needs strong control to ensure fair and win-win outcomes.
Can you elaborate further?
Phat Dat always prioritizes “credibility” and as a result, investors have always had strong faith in the company’s growth. Even amidst difficulties in the real estate market, the investors have stayed firm and stood with it.
With the timely completion of the private bond placements based on investors’ commitments, Phat Dat will tap a strong resource to boost its cash flow.
Through the ongoing “crisis” in the real estate and bond markets, what lessons has Phat Dat drawn in terms of business strategies, tactics and governance?
The key lesson for Phat Dat is to be flexible and adapt to the situation. In particular, we will focus on restructuring our investment portfolio and reassessing and streamlining its hierarchy to ensure efficient operations.
Phat Dat will divert its focus and efforts to real estate projects that match customers’ demand and budgets while controlling its cash flow and investment portfolio to achieve the best financial results.
While skilled workforce is a major factor for all businesses, Phat Dat goes beyond that to build a workforce sharing the same credibility, honesty, long-term commitment and responsibility as the company.
What are your plans on issuing shares to existing stakeholders?
We plan to issue shares equivalent to 20% of the number of outstanding shares towards the end of the next quarter.
Can you highlight some of Phat Dat’s experiences in completing legal formalities for its projects?
Phat Dat’s workforce boasts a strong legal capacity that ensures we meet legal requirements in a timely, correct and and transparent manner.
The projects we deploy always fulfill their legal requirements. They are located in clean land lots and deployment happens after all legal aspects are covered.