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INTEREST-BEARING LOANS AND BORROWINGS

12 Months Ended

Dec. 31, 2023

INTEREST-BEARING LOANS AND BORROWINGS

INTEREST-BEARING LOANS AND BORROWINGS

11.INTEREST-BEARING LOANS AND BORROWINGS

​

​	​	​	​	​	​	​	​	​
​	​	​	​	As of December 31,
​	​	Note	​	2022	​	2023	​	2023
​		​		VND million		VND million		USD
Short-term
Loans from banks		11.1		6,268,276	​	21,307,941		892,815,763
Current portion of long-term loans		11.2		8,311,277	​	7,143,376		299,311,824
Current portion of bonds		11.3		—	​	11,443,465		479,488,184
TOTAL	​	​		14,579,553	​	39,894,782		1,671,615,771
Long-term
Loans from banks		11.2		27,652,234	​	22,590,438		946,553,172
Bonds		11.3		13,972,726	​	7,551,628		316,417,833
Loans from others	​	​	​	—	​	28,083	​	1,176,695
TOTAL	​	​		41,624,960	​	30,170,149		1,264,147,700

​

As of December 31, 2023, the remaining balance of undrawn lines of credit for short-term financing was VND2,176.6 billion (USD91.2 million). Interest rate and maturity date would be determined at disbursement date of the loans.

11.1Short-term loans from banks

Details of the short-term loans from banks of the Group as of December 31, 2023 were as follows:

​

​	​	​	​	​	​	​	​	​
Bank	​	As of December 31, 2023			​	Maturity	​	Collateral
​		​		USD		​		​
​	​	​	​	(Convenience	​	​	​	​
​	​	VND million	​	translation)	​	​	​	​
Vietnam Prosperity Joint Stock Commercial		8,357,347		350,177,952		From January		Sharing collateral with a group of
Bank	​	​	​	​	​	2024 to	​	companies guaranteed the ultimate
​	​	​	​	​	​	June 2024	​	parent company
Vietnam Technological and Commercial		4,336,556		181,704,349		From January to		Sharing collateral with a group of
Joint Stock Bank	​	​	​	​	​	November 2024	​	companies guaranteed the ultimate
​	​	​	​	​	​	​	​	parent company
Saigon – Hanoi Commercial Joint Stock		1,999,554		83,782,536		From February		Sharing collateral with a group of
Bank	​	​	​	​	​	2024 to	​	companies guaranteed by certain shares
​	​	​	​	​	​	December 2024	​	of the ultimate parent company
Joint stock Commercial Bank for Investment		1,495,421		62,659,055		From March		Certain shares of an affiliate of the
and Development of Viet Nam – Ha Thanh	​	​	​	​	​	2024 to June	​	Group held by the ultimate parent
Branch	​	​	​	​	​	2024	​	company
Joint stock Commercial Bank for Investment		1,300,000		54,470,795		From April		Certain shares of an affiliate of the
and Development of Viet Nam – Quang	​	​	​	​	​	2024 to June	​	Group held by the ultimate parent
Trung Branch	​	​	​	​	​	2024	​	company
Westlake Flooring Company, LLC		824,671		34,554,219		May 2024		Vehicles under loan contract
Ho Chi Minh City Development Joint Stock		2,994,392		125,466,857		From January		Certain shares of an affiliate of the
Commercial Bank	​	​	​	​	​	2024 to	​	Group held by the ultimate parent
​	​	​	​	​	​	June 2024	​	company
TOTAL		21,307,941		892,815,763

​

Details of interest rate during the year of short-term borrowings as of December 31, 2023 were as follows:

​

​	​	​	​	​
Loans and borrowings		Currency		Interest rate applicable in 2023
Short-term Loans	​	VND	​	From 6.7% to 15%
UPAS Letter of Credit	​	VND	​	From 10.5% to 14.5%

​

​

11.INTEREST-BEARING LOANS AND BORROWINGS (continued)

11.2Long-term loans from banks

Details of long-term borrowings as of December 31, 2023 were as follows:

​

​	​	​	​	​	​	​	​	​
Lenders	​	As of December 31, 2023			​	Maturity date	​	Collateral
​		​		USD		​		​
​	​	​	​	(Convenience	​	​	​	​
​	​	VND million	​	translation)	​	​	​	​
Syndicated loan No.1		13,997,995		586,524,554		From March 2024 to September 2030		(i)
In which: current portion		2,176,904		91,213,609
Syndicated loan No.2		4,473,261		187,432,372		From May 2024 to November 2024		(i)
In which: current portion		4,473,261		187,432,372
Syndicated loan No.4		2,200,874		92,217,967		From June 2024 to December 2026		(i)
In which: current portion		358,215		15,009,428
Syndicated loan No.5		3,127,891		131,060,546		From November 2024 to November 2029		(i)
In which: current portion	​	129,791	​	5,438,322	​	​	​	​
Syndicated loan No.6		5,918,804		248,001,508		From November 2025 to November 2026		(i)
Loan from others		14,989		628,049		From January 2024 to October 2026		Unsercured
In which: current portion		5,205		218,093
TOTAL		29,733,814		1,245,864,996
In which:
Non-current portion		22,590,438		946,553,172
Current portion		7,143,376		299,311,824

​

Details of long-term borrowings as of December 31, 2022 were as follows:

​

​	​	​	​	​	​	​	​	​
Lenders		As of December 31, 2022				Maturity date		Collateral
​		​		USD		​		​
​	​	​	​	(Convenience	​	​	​	​
​	​	VND million	​	translation)	​	​	​	​
Syndicated loan No.1	​	15,287,959		640,574,834	​	From March 2023 to September 2030	​	(i)
In which: current portion	​	2,119,385		88,803,528	​		​
Syndicated loan No.2	​	5,563,099		233,097,251	​	From May 2023 to November 2024	​	(i)
In which: current portion	​	1,277,045		53,508,967	​		​
Syndicated loan No.3	​	4,714,072		197,522,501	​	April 2023	​	(i)
In which: current portion	​	4,714,072		197,522,501	​		​
Syndicated loan No.4	​	2,290,606		95,977,793	​	From December 2023 to December 2026	​	(i)
In which: current portion	​	176,775	​	7,406,981	​	​	​	​
Syndicated loan No.5	​	2,912,644	​	122,041,565	​	From November 2024 to November 2029	​	(i)
Syndicated loan No.6	​	5,137,283	​	215,255,300	​	From November 2025 to November 2026	​	(i)
Other loan from bank	​	57,848		2,423,868	​	From March 2023 to December 2024	​	(i)
In which: current portion	​	24,000		1,005,614	​		​
TOTAL	​	35,963,511		1,506,893,112	​		​
In which:	​	​		​	​		​
Non-current portion	​	27,652,234		1,158,645,521	​		​
Current portion	​	8,311,277		348,247,591	​		​

(i) As of December 31, 2023 and 2022, these long-term loans were secured by:

● Property, plant and equipment (Note 9), the Debt Service Reserve Account at the offshore account management bank, the Revenue Account at a commercial bank with outstanding balance and accumulated other related benefits arising from such account;

​

11.INTEREST-BEARING LOANS AND BORROWINGS (continued)

● Certain shares of an affiliate held by another affiliate, certain shares of another subsidiary held by the ultimate parent company;

● Payment guarantee from the ultimate parent company and a commercial bank. The payment guarantee from the commercial bank is secured by certain properties held by affiliates;

As of December 31, 2023, the Group’s collateral cover ratio was less than the required ratio specified in certain borrowing agreements with outstanding balance amounting to VND17,125,887 million (USD718 million). The Group subsequently restored the collateral cover ratio by adding additional assets into the collateral pursuant to the contractual agreements. By the date of the consolidated financial statements, the Group is in progress of completing administrative procedures with the relevant regulatory body to register the additional collaterals. Accordingly, VND14,819,192 million (USD621 million) under this borrowing agreement continued to be classified as non-current liabilities as of December 31, 2023.

Details of interest rate during the year of borrowings as of December 31, 2023 as follows:

​

​	​	​	​	​
Loans and borrowings		Currency		Interest rate applicable in 2023
Secured loans	​	VND	​	Floating interest rate, determined by the bank every six months, 10.2% to 11.8% per annum
Secured loans without swap contract	​	USD	​	Floating interest rate, from 4.93% to 9.09% per annum
Secured loans with floating interest rate swapped for fixed interest rate (also fixed transaction rate) under swap contracts (Note 20A)	​	USD	​	Fixed interest rate under swap contract from 4.1% to 9.15% per annum

​

11.3  Bonds

The balance as of 31 December 2023 includes bonds arranged by a third counterparty:

● The bonds being due in December 2024 with a total issuance value of VND11,500 billion. The remaining principal balance of the bonds is VND11,443.5 billion (USD479.5 million) (net of issuance costs) as of December 31, 2023. These bonds are secured by shares of an affiliate in the Group held by the ultimate parent company, and bear interest at the rate ranging from 9% to 9.25% for the first year. In the following years, the interest rate is determined by the 3.8% to 3.9% marginal interest rates and 12-month saving interest rate for individuals (paid-in-arrears) of Joint Stock Commercial Bank for Foreign Trade of Vietnam, Bank for Investment and Development of Vietnam, Vietnam Joint Stock Commercial Bank for Industry and Trade and Vietnam Technological and Commercial Joint Stock Bank. The Company and its subsidiaries have received a guarantee (irrevocable and unconditional) for all payment obligations related to this bond from the ultimate parent company.

​

11.INTEREST-BEARING LOANS AND BORROWINGS (continued)

● The bonds being due in May 2025 with a total issuance amount of VND2,000 billion. The remaining principal balance of the bonds is VND1,985.7 billion (USD83.2 million) (net of issuance costs) as at December 31, 2023. The bonds are secured by shares of an affiliate held by the ultimate parent company, are guaranteed (irrevocable and unconditional) by the ultimate parent company for entire repayment obligations relating to the bonds and bear interest at the rate of 9.26% for the first year. In the following years, the interest rate is determined by 3.9% marginal interest rate and 12-month saving interest rate for individuals (paid-in-arrears) of Joint Stock Commercial Bank for Foreign Trade of Vietnam, Bank for Investment and Development of Vietnam, Vietnam Joint Stock Commercial Bank for Industry and Trade and Vietnam Technological and Commercial Joint Stock Bank;

● The bonds being due in September 2025 with a total expected issuance amount of VND1,200 billion, of which the Group received a disbursement of VND620 billion. The remaining principal balance of the bonds as of December 31, 2023 is VND614.1 billion (USD25.7 million) (net of issuance costs). The bonds are secured by shares of the ultimate parent company held by VIG and guaranteed by the ultimate parent company. The bonds bear interest at the rate of 10.42% for the first year. In the following years, the interest rate is determined by 5% marginal interest rate and 12-month saving interest rate for individuals (paid-in-arrears) of Joint Stock Commercial Bank for Foreign Trade of Vietnam, Bank for Investment and Development of Vietnam, Vietnam Joint Stock Commercial Bank for Industry and Trade and Vietnam Technological and Commercial Joint Stock Bank.

● The bonds being due in January 2025 and March 2025 and with a total expected issuance amount of VND5,000 billion. The remaining principal balance of the bonds as of December 31, 2023 is VND4,951.8 billion (USD207.5 million) (net of issuance costs). The bonds are secured by shares of the ultimate parent company held by the Company’s General Director and bear interest at the rate from 14.4% to 14.5% per annum during the bond period.

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The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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