Vietnam's construction giant Coteccons plans $53 mln bond issue

Vietnamese construction giant Coteccons (HoSE: CTD) plans to issue bonds worth up to VND1.4 trillion ($53.45 million) to the public this year as part of its 2025 capital mobilization plan, according to a company release.

The proposed bond issuance is subject to shareholder approval, which will be sought via a ballot on July 17-28. The company will finalize the list of eligible shareholders on July 11.

In a separate move, Coteccons said it will proceed with the sale of 4,000 remaining shares from its employee stock ownership plan (ESOP). As of June 19, approximately 1.496 million out of 1.5 million ESOP shares had been subscribed.

The unsold shares will be issued to Dinh Thi Hong Tham, Coteccons’s authorized officer for information disclosure, at VND10,000 ($0.38) per share, and will be subject to a one-year lock-up period.

In the third quarter of its fiscal year 2024-2025 (January-March 2025), Coteccons reported consolidated revenue of VND5 trillion ($190.8 million), up 7.2% year-on-year. Its net profit dropped 46% to VND57 billion ($2.18 million).

Over the first nine months of the fiscal year (July 2024-March 2025), the company posted consolidated revenue of VND16.65 trillion ($635.6 million), up 15.2% year-on-year. Coteccons saw net profit rise 5.8% to VND255 billion ($9.73 million) in the period.

Coteccons has set targets of VND25 trillion ($954.38 million) in revenue and VND430 billion ($16.4 million) in net profit for FY2025.