Property giant Vinhomes raises additional $157 mln in bonds

Leading housing developer Vinhomes successfully raised VND4 trillion ($157 million) in private placement bonds on Tuesday, according to the Hanoi Stock Exchange (HNX).

The HNX said the 36-month bonds are non-convertible, with an annual coupon rate of 12% and no warrants, and secured by assets.

Since the beginning of the year, Vinhomes, listed on the Ho Chi Minh Stock Exchange (HoSE) as VHM, has mobilised VND20.5 trillion ($805.1 million) from nine private placements, accounting for 32.2% of the total value of bonds issued by real estate companies in Vietnam in the first 11 months of the year.

According to its Q3/2024 financial statement, Vinhomes' short-term and long-term bond balance reached VND27.5 trillion ($1.08 billion), representing more than 5.2% of its total capital. The maturity period ranges from October 2024 to August 2026, with fixed coupon rates from 8.8% to 12% per year. VietinBank Securities acts as the consultant for all of the firm’s bond packages.

On November 21, Vinhomes completed its record share buyback. Over 22 trading sessions (from October 23 to November 21), the company repurchased nearly 247 million shares at an average price of over VND42,444 ($1.65) per share, with the total transaction value estimated at nearly VND10.5 trillion ($412.37 million).

The repurchased shares accounted for 66.75% of the total registered volume. This is the largest share buyback in the history of Vietnam's stock market.

In Q3, the developer reported net revenue of VND33.3 trillion ($1.3 billion), a slight increase of 1.8% compared to the same period last year. Due to higher costs and expenses, its after-tax profit decreased by 16% to VND8.98 trillion ($352.7 million).

For the first nine months of the year, Vinhomes recorded net revenue of VND69.9 trillion ($2.75 billion), down 26% year-on-year. The company's pre-tax and after-tax profits reached VND24.6 trillion and VND20.6 trillion ($809 million), respectively, representing declines of 41.3% and 36.4% from the same period last year.

Vinhomes stated that its profit results were supported by the handover of projects such as Vinhomes Ocean Park 2–3 in the northern province of Hung Yen and the recognition of business results from the Vinhomes Royal Island project in the northern port city of Hai Phong during the period.

Vinhomes had set respective revenue and after-tax profit targets of VND120 trillion ($4.71 billion) and VND35 trillion ($1.37 million) for 2024. After nine months, the company achieved nearly 58.3% and 58.9% of these goals.

VHM shares closed Thursday at VND40,200 ($1.58) apiece.