Becamex Group (BCM) Plans VND1,200B Bond Issue to Restructure Bank Debt

Overview

Becamex Group (HOSE: BCM) has approved a plan to issue VND1,200 billion (about USD48 million) of 36-month non-convertible, unsecured bonds under code BCML12602, according to a company disclosure. The proceeds will be used to restructure existing bank debt, specifically short-term loans at BIDV and Vietcombank, rather than to fund new industrial park or real estate projects.

Key Facts

• Maximum 12,000 bonds with a face value of VND100 million each, totaling VND1,200 billion.
• Tenor of 36 months; bonds are non-convertible, without warrants, and unsecured.
• Fixed interest rate of 12.5% per annum for the first four interest periods; subsequent periods pay a floating rate of 3.5% plus a reference rate (MB).
• Proceeds earmarked to repay VND110 billion of short-term principal at BIDV Binh Duong branch and VND600 billion at Vietcombank Dong Nai branch.
• The remaining VND490 billion will be used for other bank debt restructuring, per the issuance plan.
• In August-September 2026, BCM issued 7,100 bonds under code BCML12601, raising VND710 billion, with a 3-year tenor and 11% fixed rate for the first two periods.
• On 15 September 2026, BCM fully repaid VND2,500 billion of principal and nearly VND69 billion of interest on bond code BCMH2126005.

What Happened

Becamex Group, formally Tập đoàn Đầu tư và Phát triển Công nghiệp Becamex - CTCP, has approved the issuance of corporate bonds under code BCML12602, according to a company announcement. The bonds will be offered in the domestic market with a face value of VND100 million each, and the total expected proceeds are VND1,200 billion. The interest rate is structured as a combination of fixed and floating rates: 12.5% per annum for the first four interest periods, and thereafter a floating rate equal to 3.5% plus a reference rate, which the filing identifies as MB.

The stated purpose of the issuance is to restructure some of the issuer’s bank debt. Specifically, VND110 billion will be used to repay short-term principal at BIDV’s Binh Duong branch, and VND600 billion to repay short-term principal at Vietcombank’s Dong Nai branch. The filing does not disclose the remaining VND490 billion allocation in detail, but the overall objective is debt restructuring. This follows a previous issuance in the 28 August to 15 September 2026 period, when BCM raised VND710 billion through 7,100 bonds under code BCML12601, with a 3-year tenor and an 11% fixed rate for the first two periods. On 15 September 2026, the company also fully settled its BCMH2126005 bond, paying VND2,500 billion of principal and nearly VND69 billion of interest.

Market Context

BCM shares closed at VND40,900 on 20 October 2026 on the HOSE exchange. The company operates in the real estate and infrastructure sectors, with a focus on industrial parks and urban development in Binh Duong province, now part of Ho Chi Minh City. The bond issuance comes amid a broader trend of Vietnamese real estate developers restructuring debt through corporate bond channels, as bank credit for the sector remains constrained. The relatively high fixed rate of 12.5% for the first four periods reflects elevated funding costs for unsecured debt in the current market environment.

Strategic Significance

For long-term investors, the issuance signals a continued reliance on debt refinancing rather than equity or operating cash flow to manage maturities. While the restructuring extends the maturity profile of short-term bank loans, the unsecured nature and high coupon (12.5% initially) increase interest burden. The successful repayment of the VND2,500 billion BCMH2126005 bond demonstrates access to liquidity, but the need for repeated bond issuance to roll over bank debt suggests persistent leverage. The strategic angle is whether BCM can improve cash flow from its industrial park and real estate projects to reduce dependence on refinancing. The company’s ability to secure unsecured bonds at this rate also indicates investor confidence, but the floating rate after the first four periods introduces interest rate risk.

What to Watch

• Completion of the BCML12602 bond issuance and the actual amount raised, expected in the fourth quarter of 2026.
• Details on the use of the remaining VND490 billion proceeds, which the filing does not fully disclose.
• BCM’s Q3 2026 earnings release, expected in late October 2026, for updates on cash flow and debt levels.
• Any further bond issuances or debt repayments in 2026, as the company continues to manage its maturity profile.
• Interest rate movements, particularly the MB reference rate, which will affect the floating coupon after the first four periods.