A sugarcane material field belonging to Thành Thành Công Biên Hòa Joint Stock Company. The company plans to issue VNĐ 2.4 trillion ($103.25 billion) worth of convertible bonds and add 11 new business lines. — Photo courtesy of TTC

HCM CITY — Sugar producer Thành Thành Công - Biên Hòa Joint Stock Company (SBT) plans to make a private placement of 2,400 convertible bonds with a par value of VNĐ1 billion (US$43,097) for a minimum duration of three years, according to a document it has sent to shareholders for approval.

The coupon rate will be negotiated with each investor.

If it manages to sell all the bonds it will raise VNĐ2.4 trillion ($103.25 million).

The bonds can be converted into common stock one year after the issue date.

By reducing short-term debt and restructuring capital, the company seeks to ensure stable financial resources and satisfy the requirements of strategic investors.

SBT also plans to add 11 new business lines, mainly in animal husbandry and other crops besides sugarcane, thus increasing the total number of its business lines to 42.

The company expects to increase its by-products to diversify its revenue sources and meet the sustainable development goals.

It expects by fiscal 2020-21 revenues from by-products like molasses, microbial fertilisers, biomass energy, and others to double to 30 per cent.

The company is in the process of negotiating with several large foreign corporations for tie-ups in cultivation and animal husbandry to leverage their mutual strengths.

SBT also plans amendments and supplements to the company charter and buyback of convertible preferred stocks as a preparatory step for collaborating with long-term investors for capital planning and management and business operations, especially with the ASEAN Trade in Goods Agreement about to come into effect.   

Its board of directors has approved the purchase of 2.082 million shares, or a 41.65 per cent stake, in property developer Tân Định Import Export JSC, which has a portfolio of projects in prime locations. — VNS