Cong Thanh Joint Stock Company sold VND1.5 trillion (US$76.92m) worth of long-term secured corporate bonds in the domestic market on December 24 to raise fund for its cement project. The eight-year bonds have floating yields that are adjusted every three months. Vietinbank Securities JSC (CTS) helped arrange and underwrite the bond issuance, CTS said on its website.
The Ho Chi Minh City-based company will use the proceeds to finance the second production line of Cong Thanh cement plant with a capacity of 10,000tpd clinker in the northern province of Thanh Hoa. With construction duration of 24 months, the second phase of the plant has an investment of US$420m, using modern technology and equipment from Germany.
Cong Thanh Cement operated the first production line of its cement plant, with a capacity of 2500tpd clinker in mid-2008. From now to 2012, it will boost its registered capital to VND2 trillion from current VND900 billion to finance the second line.
In May this year, it also sold VND700 billion of secured bonds with terms of five years and eight years, offering a coupon of 15.5% and 16% respectively for the first year. The company targets a net profit of VND75 billion on revenues of VND835 billion in 2010, compared to VND32.11 billion and VND657 billion in 2009, respectively.