Trung Nam Renewable Energy raises $73 mln in private bond issuance

Trung Nam Renewable Energy Corporation has successfully raised VND1.93 trillion ($73.28 million) through a private bond issuance with a four-year tenor and annual interest rate of 10.7%.

The bonds were issued from May 18-19, according to the Hanoi Stock Exchange

Trung Nam Renewable Energy, formerly known as Trung Nam Energy Corporation, was established in 2020 as a member of Trung Nam Group.

In December 2021, the company increased its charter capital from VND3.21 trillion to over VND9.08 trillion ($344.88 million) and changed its name to Trung Nam Renewable Energy. Nguyen Tam Thinh is chairman and legal representative.

The company is considered one of Vietnam’s leading renewable energy developers, with total installed generation capacity reaching 1,360 megawatts as of September 30, 2025. Its portfolio spans hydropower, solar power and wind energy projects.

Most of the company’s electricity output is sold under Vietnam’s preferential feed-in tariff (FIT) mechanism, providing advantages over traditional power producers.

However, according to FiinRatings, Trung Nam Renewable Energy has recorded substantial receivables linked to the Trung Nam Thuan Nam project due to ongoing inspections regarding the implementation site for 277.88 MW of capacity and unresolved negotiations over electricity pricing for an additional 172.12 MW.

The company has also set aside VND819.1 billion ($31 million) in bad debt provisions related to the project.

Separately, the Dong Nai 2 hydropower project is under inspection over electricity tariffs allegedly exceeding regulatory ceilings, raising risks of retrospective revenue adjustments, interest penalties or reductions in approved selling prices.

According to its financial report for the first half of 2025, Trung Nam Renewable Energy posted after-tax profit of nearly VND468.5 billion ($17.79 million), slightly lower than VND504 billion in the previous period.

The profit helped the company eliminate accumulated losses, with retained earnings turning positive at nearly VND23 billion ($873,350) as of June 30, 2025.

At the same date, shareholders’ equity stood at more than VND11.2 trillion ($425.28 million), including over VND9.08 trillion ($344.9 million) in charter capital and over VND2.57 trillion in non-controlling interests.

The company’s liabilities-to-equity ratio was recorded at 2.8 times, equivalent to total liabilities of more than VND31.3 trillion ($1.19 billion). Outstanding bond debt accounted for more than VND15 trillion ($569.62 million).