Vietnam developer Becamex IDC problems bonds, stocks to amplify business assets portfolio

State-controlled Becamex IDC Corp, a leading eco-industrial and urban real estate developer in Vietnam, has been actively using corporate bond and share issuance channels to expand its realty portfolio.

Since the start of this year, the company, listed on the Ho Chi Minh Stock Exchange (HoSE) as BCM, has raised a total of VND1,800 billion ($72.4 million) via VND-denominated corporate bonds in four batches. The latest issuance, worth VND500 billion ($20.21 million), was completed on August 22.

All the bonds have a three-year maturity period. The firm has not disclosed the coupon rates of the bonds issued so far this year.

In addition, the company has plans to raise VND15 trillion ($603 million) by offering 300 million shares to the public at a minimum unit price of VND50,000 ($2.02).

The proceeds from the public offering will be used to fund key industrial park (IP) projects, contribute capital to subsidiaries, and restructure the company’s finances.

Becamex IDC is mobilizing resources to carry out two crucial projects: the Bau Bang IP and the Cay Truong IP, both in the southern province of Binh Duong. The company is headquartered in the province, a major industrial hub in the country.

The Bau Bang IP project covers over 2,000 hectares, with half dedicated to industrial real estate and the rest to urban developments. The project is now in its second phase, with an expansion of 1,000 hectares and an estimated cost of VND3.5 trillion ($140.78 million).

The 700-ha Cay Truong IP project, which has an investment of VND5,459 billion ($219.6 million), is expected to generate stable cash flows for Becamex IDC in the next three to five years.

The company earned an audited consolidated net profit of VND391.47 billion ($15.75 million) on revenues of VND1,967 billion in H1/2024, up 126.3% and 4.3% year-on-year, respectively.

Becamex IDC and Singapore’s Sembcorp Industries are two co-developers of the Vietnam-Singapore Industrial Parks (VSIPs) in Vietnam.

BCM shares closed Thursday at VND71,900 ($2.89) apiece.