In the last 6 months, Vietnam Electrical Equipment Corporation (Gelex) has raised nearly VND 3,000 billion through corporate bond issuance.
Gelex building at 52 Le Dai Hanh, Hai Ba Trung district, Hanoi. Photo: Duc Quyen.
Vietnam Electrical Equipment Joint Stock Corporation (Gelex – Code: GEX) has just passed a resolution on a plan to issue 350 billion VND of corporate bonds. Bond issuance time and term has not been announced.
Within the last 6 months, Gelex has borrowed trillions of dong via corporate bonds.
Specifically, on December 31, 2019, Gelex issued VND 1,150 billion of 10-year bonds with a fixed interest rate of 6.95% per annum, paying interest every 6 months. This bond is guaranteed for payment by CGIF – a trust fund of the Asian Development Bank (ADB).
On March 31, 2020, Gelex issued 300 billion dong of guaranteed bonds, with a term of 2 years, fixed interest rate of 10% / year, and paid interest every 6 months. The bond is secured by 8.9 million shares of TBD (Dong Anh Electrical Equipment Corporation) and 3.8 million shares of THI (Electrical Equipment Joint Stock Company).
On April 15, Gelex continued to mobilize VND 400 billion through 3-year bonds, floating interest rates according to the market, paying interest every 6 months. The collateral is Gelex’s headquarters building at 52 Le Dai Hanh, Hai Ba Trung, Hanoi and Gelex’s capital contribution at Gelex Energy One Member Company Limited.
On May 13, Gelex issued an additional VND300 billion of 3-year bonds, fixed interest rate of 9.5% a year, paying interest every 6 months.
The collateral includes 13.5 million shares of VCW (Song Da Clean Water Investment Joint Stock Company) freely transferable, owned by Gelex Energy One Member Company Limited. The value of collateral is estimated at VND 472.5 billion.
On May 29, Gelex continued to mobilize VND 700 billion via 3-year bonds, including VND 500 billion of bonds A with an interest rate of 6.5% / year and VND 200 billion of bonds B with interest. 9% / year.
The collateral includes CAV shares (Vietnam Electric Cable Corporation) and VCW shares (Song Da Clean Water Investment Joint Stock Company). The value of issued bonds is not higher than 60% of the original collateral value.
So in the last 6 months, Gelex has raised a total of VND 2,850 billion through corporate bonds.