BCG Energy, Hanwha Energy agree new bond payment deadline

The deadline has been set for June 30 this year, the Vietnamese firm stated on Friday, whilst explaining that financial conditions remain stable. The announcement follows a Hanoi Stock Exchange document issued on February 21, which listed companies that were late to make bond payments, including BCG Energy.

BCG Energy, part of Vietnamese conglomerate Bamboo Capital Group, issued a $5 million convertible bond to Hanwha Energy in September 2019, and this was used to develop renewable energy projects in Vietnam as part of the duo’s strategic partnership. The bond was intended to mature after three years, i.e. on September 4, 2022, with Hanwha given the option of converting it into shares.

BCG Energy said that towards the end of the term, Hanwha Energy decided not to convert, and the two sides agreed partially to change the bond into a debt to be settled by June 30, 2023.

BCG Energy CEO Pham Minh Tuan said his company had partially paid out to Hanwha Energy, and the two sides had agreed upon terms to settle the unpaid $3 million.

“This agreement has not been reported enough, and that’s why there are some unnecessary concerns about our financial health. Instead, we’re operating normally,” he said.

BCG Energy is implementing rooftop solar projects and completing its solar power and offshore wind projects in its portfolio, he added.

As of December 31, 2022, BCG Energy’s equity stood at over $189 million, and its total renewable assets were more than $875.2 million. The company’s 2022 net revenue was more than $44.7 million, and profit after tax was more than $10.8 million.

Sembcorp Utilities, a wholly-owned subsidiary of Sembcorp Industries and BCG Energy, a wholly-owned subsidiary of Bamboo Capital Group inked an agreement for the development of renewable projects in Vietnam on December 9, 2021.

Initial public offerings have been muted across the board as macroeconomic headwinds and market volatility colour the landscape. Vo Manh Tin, CEO of BCG Land – a member of Bamboo Capital Group – told VIR’s Luu Huong how the developer is preparing for its potential offering.

Bamboo Capital Group and its subsidiary BCG Financial JSC on December 2 received the Ministry of Finance's approval for the acquisition of 80.64 per cent of shares of AAA Insurance JSC.