Dien May Xanh approves bond issuance with stock options for executives

At an extraordinary general meeting on October 29, Dien May Xanh (DMX) approved a plan to issue 100 billion VND in bonds accompanied by stock options for 15 executives. While the bond issuance is small, the attached warrants allow the purchase of up to 126.7 million shares, representing 10% of the company’s outstanding stock at a price of 74,000 VND per share.

The bonds have a five-year term with a fixed 8% annual interest rate and are guaranteed by Vietcombank. The proceeds from the 100 billion VND issuance will be used to partially repay a 113.9 billion VND loan at MUFG. Chairman Nguyen Duc Tai stated that this mechanism is a viable way to implement a long-term incentive program linked to performance, specifically targeting profit and stock price growth between 2026 and 2030.

Regarding other financial activities, board member Vu Dang Linh addressed shareholder concerns about investments in real estate bonds. He clarified that DMX primarily invests in bank deposits and certificates of deposit. When investing in bonds, the company utilizes repo transactions with short terms of 6 to 12 months to mitigate risk.

Dien May Xanh reported strong financial results for the first nine months of the year, with revenue reaching 99,460 billion VND, a 25% increase year-on-year. Third-quarter profit rose 105% compared to the same period last year.