INTRODUCTION OF CT LAND CORPORATION
Overview of CT Land Corporation
1.1.1 General information of CT Land Corporation
Legal Vietnamese name: Công ty Cổ phần Bất động sản CT Legal English name: CT LAND CORPORATION
Abbreviated name: CTLAND Head Office: 117 Nguyen Dinh Chieu Street, Vo Thi Sau Ward, District 3, Ho Chi Minh City, Vietnam
Business Registration Certificate No 0306240094 Tel: 08 6297 1936
Fax: 08 6297 2000 Email: infor@ctland.com.vn Website: ctland.com.vn Charter capital: 4.200.000.000.000 VND Main business activities: CT Land engages in real estate sector, including renting, leasing and managing properties
1.1.2 Brief history and development of CT Land Joint Stock Company
CT Land Corporation, a subsidiary of CT Group Joint Stock Company, specializes in real estate operations The company is currently concentrating on four primary sectors: residential, retail, logistics, and tourism.
With over 30 years of experience, CT Land stands as one of Vietnam's longest-running private enterprises, excelling in diverse real estate developments The company has successfully managed projects across various segments, including luxury, high-end, mid-range, and affordable residential properties, as well as supermarkets, shopping malls, offices, and logistics facilities.
CT Land has experienced significant growth, boasting over 36 member companies and a workforce of 2,000 employees across various sectors The company has received more than 100 prestigious awards, including the First-class Labor Medal from the President of Vietnam, Agoda.com's 2018 Gold Circle Awards, and accolades from Dot Property Vietnam for "Best Innovative Green Building" and "Best Mixed-use Architecture Design," alongside numerous honors from the Government and media.
This mid-course internship report focuses on the process of managing corporate bonds, specifically detailing the principal and interest payment procedures at CT Land Corporation The report outlines the critical steps involved in the bond payment process, emphasizing the importance of timely payments to maintain investor trust and corporate credibility Additionally, it highlights the financial implications of these transactions on the company’s overall fiscal health and its commitment to fulfilling bondholder obligations Through this internship, valuable insights into corporate finance practices and bond management have been gained, contributing to a deeper understanding of the financial operations within a corporate setting.
Moving forward, CT Land aims to utilize its unique competitive advantages in addititon to its extensive experience and capabilities to become the larrgest Real
Estate Developer in Southern Vietnam with focus on Transportation Oriented and
Integrated Townships Development Following international best practices, CT
Land recently adopted current IFC Corporate Governance standards Given its clear vision and dedication, CT Land's development strategy revolves around the 6 golden words Culture, Speed, Technology, Globalization, Differentiation, and
1.1.3 Structure of the Finance Department at CT Land Corporation
Financial Force is divided into two main departments: Finance and Accounting.
Due to the specific nature of the report, I only focus on Finance Department The
Structure Hierarchy Chart of Finance Department at CT Land Corp is structured as figure 1.1 below
The diagram briefly illustrates the functions and responsibilities of each team in
Financial Deparment as well as clearly point out how each department related to other departments There are four teams in total, which are: Back Office (BO) team,
Front Office (FO) team, Initial Public Offering (IPO) team and International
The Product Development (IPD) team relies on the Back Office to prepare essential plans, reports, statements, and documents related to the project, which are then provided to the Front Office for further action.
The BO team, specifically the Front Office, plays a crucial role in managing communications and relationships with partners regarding business cooperation and capital raising initiatives This team is also accountable for the IPO team and IPD team, overseeing their responsibilities in these areas.
This internship report details the process of managing corporate bonds, specifically focusing on principal and interest payments at CT Land Corporation The report outlines the procedures involved in tracking and processing these financial transactions, highlighting the importance of accuracy and timeliness in bond management It also emphasizes the role of corporate bonds in funding projects and the implications of payment schedules for both the company and investors Understanding these processes is crucial for effective financial management within the corporate sector.
Figure 1 1 Organizational structure of the Finance Department at CT Land
CT land is currently developing 4 main product lines, including: CT Homes, CT Town, CT World, CT Com Each product lines are described as folows:
Commercially referred to as "DIYAS," this innovative housing product line leverages 4.0 technology to address the significant demand for affordable housing Aiming to cater specifically to young individuals, DIYAS seeks to provide accessible housing solutions in the ever-growing affordable housing market.
This product line targets projects on land sizes under 3 hectares, strategically situated in prime locations within Ho Chi Minh City’s District Key areas include major thoroughfares like Pham Van Dong Avenue, Ha Noi Highway, Ring Road 2, and the upcoming Metro Lines No 1 and 2.
This mid-course internship report focuses on the processes involved in corporate bonds, specifically detailing the principal and interest payment procedures at CT Land Corporation The report outlines the significance of understanding these financial mechanisms, emphasizing their impact on corporate finance and investment strategies It provides insights into the operational workflow, including the calculation and disbursement of interest payments, as well as the management of principal repayment schedules Overall, this report serves as a comprehensive overview of the corporate bond payment processes within the context of CT Land Corporation.
CT World represents the long-term strategic product line of CT Land, leveraging the extensive strengths cultivated by CT Group over three decades This initiative aims to create a comprehensive ecosystem for its townships and mega townships, enhancing community living and development.
CT Com provides versatile commercial spaces tailored to various business requirements, ranging from 10 m² to 200,000 m² in size Their offerings include commercial, office, and logistical spaces strategically located along prominent commercial and financial corridors in major cities Additionally, CT Com features tourism projects designed to reflect a philosophy of solidarity and harmony between humanity and nature.
1.1.5 Financial health and business outcomes of CT Land Corporation in 2018-2020
Table 1.1 presents the business outcomes of CT Land Corp for the period of 2018-
From 2018 to 2021, the company's growth rate experienced significant fluctuations, driven by the progress of construction projects and the timely handover of completed works to customers The analysis is based on the consolidated financial statements from these years, highlighting the dynamic nature of the company's performance.
Table 1 1 The business outcome of CT Land Corporation in 2018-2020
This mid-course internship report details the process of managing corporate bonds, specifically focusing on principal and interest payments at CT Land Corporation The report outlines the critical steps involved in the payment process, including the calculation of interest, adherence to payment schedules, and the overall impact on the corporation's financial health Additionally, it highlights the importance of accurate record-keeping and compliance with regulatory requirements in bond management Through this internship experience, valuable insights into the intricacies of corporate finance and investment strategies were gained, contributing to a deeper understanding of the corporate bond market.
Source: Consolidated Financial Statements in 2018, 2019, 2020 of CT Land
In 2019, CT Land experienced significant growth, with total assets reaching VND 7,167.3 billion, a 33.11% increase from 2018, driven by strategic mergers and acquisitions The company's operating revenues surged dramatically, showcasing an astonishing growth rate of 2,121.9% This remarkable performance can be attributed to the launch of new projects, the commencement of operations for several initiatives, and the successful collection of short-term receivables from sales and services provided to customers.
PROCESS OF CORPORATE BONDS PRINCIPAL AND
Overview of corporate bonds issuance at CT Land Corporation
Issuing bonds offers a strategic method for non-IPO real estate businesses to raise capital for project development, leveraging benefits such as attractive interest rates and brief interest payment periods.
To grasp the intricacies of repaying corporate bonds' principal and interest, it is essential to first comprehend the issuance process of corporate bonds at CT Land Corp As illustrated in Chart 2.1, the steps involved in issuing corporate bonds are clearly outlined This article provides a concise overview of the overall procedure, complemented by a practical example of how bonds were issued to raise capital for the Léman Cap Residence project, developed by Casablanca Joint Stock Company, a subsidiary of CT Land Corp and the bond issuer.
CT Land Corp.'s issuance of corporate bonds adheres to the Law on Enterprises No 59/2020/QH14 and Decree No 163/2018/ND-CP, which govern corporate bond issuance This process also complies with the regulations and requirements set forth by the Ha Noi Stock Exchange, as illustrated in the accompanying chart.
This mid-course internship report details the process of managing corporate bonds, specifically focusing on principal and interest payments at CT Land Corporation It outlines the key procedures involved in ensuring timely payments and the importance of maintaining accurate financial records The report emphasizes the role of effective communication and collaboration within the finance team to uphold the integrity of corporate bond transactions Additionally, it highlights the impact of these financial processes on the overall operational efficiency of the company.
Figure 2 1 Corporate bond issuance flowchart at CT Land Corporation
Step People in charge Flowchart
- Issuer + FD prepares + BOD approves
Source: Bond Issuance Procedure at CT Land Corporation, 2022
Prior to issuing bonds, the Issuer performs an asset valuation, typically focusing on land use rights and off-plan properties, to assess the necessity for capital raising and establish the maximum amount that can be secured To initiate the bond issuance process, the Issuer must
Issuer disclose information on bond issuance results and report results
Issuer disclose information before the issuance
Issuer prepare bonds issuance documents
Issuer make bond principal and interest payments
Issuer disclose information and report periodically until the maturity date
This mid-course internship report focuses on the process of corporate bonds, specifically detailing the principal and interest payment mechanisms at CT Land Corporation The report outlines the systematic approach taken by the corporation in managing bond payments, ensuring timely and accurate disbursement to bondholders It emphasizes the importance of these financial instruments in corporate financing and the role they play in the overall financial strategy of CT Land Corporation Through this internship, valuable insights were gained into the operational aspects of bond management and the significance of maintaining strong relationships with investors.
CT.LAND.CORPORATION is set to register its business information on the HNX, following which it will engage a securities company to consult on its bond issuance plan and manage the necessary procedures This plan will encompass essential details including the purpose of issuance, issuer information, bond name, bond code, quantity issued, par value, bond type, term, interest rate, and payment schedule Additionally, the issuer will enter into a separate agreement with a bank for the management of the bond account.
After finalizing the bond issuance documents, the issuer must disclose relevant information to investors and submit it to the HNX at least three working days prior to the expected issuance date Once the bonds are sold, the issuer and investors enter into bond sale and purchase contracts, with investors making deposits and payments to the issuer Subsequently, the issuer must report the bond issuance results to bondholders and the HNX within five working days following the issuance's conclusion Once this information is published on the HNX's corporate bonds page, the securities company and depository center will issue bond ownership certificates to the bondholders.
On the scheduled payment date, the Issuer disburses principal and interest to bondholders and continues to provide regular updates on the utilization of the capital raised from the bond issuance until maturity, ensuring that HNX can effectively monitor and manage the bond's status.
The bond issuance process for the Léman Cap Residence (LCR) project exemplifies a structured approach in capital raising Casablanca JSC initiated this process by contracting with Vietnam Assessment and Evaluation Assets JSC (VAAE) to appraise the project, resulting in a valuation of VND 598.909 billion Leveraging this valuation, Casablanca JSC aimed to raise VND 240 million through corporate bond issuance To facilitate this, the company entered into a Bond Issuance Advisory and Underwriting Agency Contract with Bao Viet Securities JSC, alongside agreements for bond account management and repayment provisions.
This mid-course internship report focuses on the process of managing corporate bonds, specifically the principal and interest payments at CT Land Corporation It outlines the critical steps involved in the payment process, highlighting the importance of accurate financial management and compliance with corporate regulations The report emphasizes the role of effective communication and coordination within the finance team to ensure timely payments and maintain investor confidence Additionally, it discusses the impact of these payments on the company's financial health and overall investment strategy.
CT.LAND.CORPORATION has partnered with Nam A Commercial Joint Stock Bank - Business Center to facilitate bond issuance procedures This bond issuance aims to enhance capital and fund investments in the Company's projects.
Casablanca JSC will use the entire proceeds to develop Léman Cap Residence project CT Land coordinated with BVSC to prepare a bond issuance plan with informations as follows:
Table 2 1 Information of Casablanca Bonds
Issuer Casablanca Joint Stock Company
Type of bond Corporate, non-convertible and secured bonds
Currency Viet Nam Dong (VND)
Coupon rate Fix interest rate 11.5%/ year
Source: Casablanca JSC – CT Land
At the end of the issuance, the Bonds are issued to a total of 4 investors, including 1 institutional investor and 3 individual investors.
Table 2 2 Information of Casablanca Bondholders
N o Name Volume Value (VND) Proportion (%)
This mid-course internship report examines the process of corporate bonds, specifically focusing on principal and interest payments at CT Land Corporation The report details the mechanisms involved in managing these financial instruments, highlighting the importance of accurate payment schedules and compliance with regulatory requirements Through this internship, valuable insights were gained into the operational aspects of corporate finance, particularly in relation to bond issuance and payment processing Understanding these processes is crucial for ensuring the financial stability and growth of the corporation.
Source: Report on bond issuance results-Casablanca JSC
CT Land periodically disclosed information on the use of capital mobilized from bonds to the bondholders and report on HNX:
Table 2 3 Situation of using capital raised from Bonds
No Project using capital from bonds
1 Invest to develop Léman Cap Residence project.
January 2022: Pay to X Joint Stock Company.
2 Invest to develop Léman Cap Residence project.
February 2022: Pay to X Joint Stock Company.
Source: Report on capital using - Casablanca JSC
Payment of bond principal and interest process
The payment of bond principal and interest at CT Land Corp occurs in step 6 of the bond issuance procedure, following the bonds' market release This process spans from the initial planning phase of bond issuance to the maturity date Consequently, the analysis of bond principal and interest payments can be divided into three key stages: prior to bond issuance, immediately after the bonds are issued, and during the interest payment period.
Corporate bonds are issued by companies based on self-borrowing and self-repayment principles, emphasizing the issuer's responsibility for debt repayment Given the high risks associated with real estate bonds, investors prioritize the purpose of bond issuance, the secured assets, and the issuer's repayment capability to safeguard their principal and interest Consequently, beyond adhering to legal regulations, issuers must demonstrate their creditworthiness and ability to repay debts effectively.
This mid-course internship report focuses on the procedures involved in managing corporate bonds, specifically the principal and interest payments at CT Land Corporation The report outlines the key processes and responsibilities associated with bond management, emphasizing the importance of timely payments and accurate record-keeping Additionally, it highlights the role of corporate bonds in financing and investment strategies, providing insights into the financial operations within the organization Overall, this report serves as a comprehensive overview of the critical aspects of corporate bond management at CT Land Corporation.
Finance Department is in charge of projecting the cash flow of the project from the time issuing the bond until the bonds matures
The bond issuance for the LCR project is backed by land use rights for a 2322 m2 area in Ward 2, Vung Tau city, which is projected to hold significant future asset value.
VND 598.909.000.000 according to the Valuation Certificate of Viet Nam
Assessment and Evaluation Assets JSC - Ho Chi Minh branch (Annex 1) and guaranteed payment by CT Land Corp.
Casablanca JSC will use the two main cash flows to pay bond principal and interest.
The company's cash management during bond principal and interest payments relies on two key factors: the available cash at the time of payments and the cash flow generated from operating activities, including the sale of apartments and shophouses from the LCR project Utilizing projected revenue data from ASD and construction cost information from the Project Development Department, I collaborated with my manager and colleagues in the Feasibility Study team to forecast the cash flow for the period of 2021 to 2023, as illustrated in Table 2 below.
Table 2 4 Projected cash flow plan for bond principal and interest payment
The mid-course internship report at CT Land Corporation focuses on the process of corporate bonds, specifically detailing the principal and interest payment mechanisms This report provides an in-depth analysis of how these financial instruments function within the corporate structure, emphasizing the importance of timely payments to bondholders Understanding the intricacies of corporate bonds is crucial for effective financial management and investment strategies Through this internship, insights were gained into the operational aspects of bond issuance and the impact of interest rates on corporate financing.
Dividend Cashflow from financing activities 244.980 - - - - (240.000)
2.2.2 When the bonds have just been issued
The Issuer will pay the Buyer interest on the Deposit at an annual rate of 8.0% from the payment date until the Signing Date of the Bond Purchase Agreement This interest will be disbursed to the Buyer within three working days following the Signing Date Interest calculations will adhere to a specified formula.
Interest = [Deposits] * [Interest Period] * [Interest rate]
The interest period is determined by counting the days from the date the Buyer pays the Deposit, or the following working day if the Deposit is paid after 4:00 p.m., up to but not including the Signing Date of the Bond Purchase Agreement The applicable interest rate is 8.0% per annum.
This mid-course internship report focuses on the process of managing corporate bonds, specifically detailing the principal and interest payment procedures at CT Land Corporation The report outlines the essential steps involved in bond issuance, including the calculation of interest, payment schedules, and the importance of timely disbursement to bondholders Additionally, it highlights the company's adherence to regulatory requirements and best practices in bond management, ensuring transparency and efficiency in financial operations Through this internship experience, valuable insights into corporate finance and investment strategies have been gained, enhancing understanding of the bond market dynamics.
The time to receive deposit will be from 8:30 to 16:00, all working days from the deposit registration date to 01 (one) day before the signing date of the Bond
Purchase Agreement In case the Buyer transfers the deposit after 16:00, the Deposit
Date will be recorded as the next working day.
Bonds are redeemed at maturity, with principal payments made on the maturity date unless redeemed earlier Interest is paid every six months from the issuance date through BVSC – Ho Chi Minh City branch until all payment obligations are met If an Interest Payment Date falls on a non-working day, it is moved to the next working day The final interest payment coincides with the maturity date, meaning that 18-month bonds issued on November 22, 2021, will have their interest paid accordingly.
(three) times with the first payment period on 22/05/2022, the second payment period on 22/11/2022 and the last payment period on 22/05/2023.
Periodic interest is calculated according to the following formula:
Interest received in each period = Interest before Tax – Personal income Tax
In which, the Buyer who is an institutional investor is not subject to Personal
For individual investors, the issuer will withhold 5% of the profits to cover personal income tax obligations, as mandated by law This withholding rate is subject to change in accordance with applicable tax regulations at the time of payment.
[Number of bonds] * [Par value] * [I nterest rate ] *
In which, the number of holding days is counted from the beginning of interest period to the date of interest payment
The issuer is obligated to fully and timely pay the principal amount of VND 240 billion to the bondholders on the maturity date of May 22, 2023, based on the actual holding amount at that time.
The mid-course internship report focuses on the process of corporate bonds, specifically detailing the principal and interest payment mechanisms at CT Land Corporation This report aims to provide a comprehensive understanding of how corporate bonds function within the financial framework of the organization, emphasizing the importance of timely payments and their impact on the company's financial health Through this internship experience, key insights into the management of corporate bonds and the associated financial responsibilities have been gained, highlighting the critical role these instruments play in corporate finance.
At each interest payment period, the interest payment process for bondholders carried out by Finance Department takes place as follows:
The Finance Department of Casablanca JSC has officially requested BVSC to issue a notice of interest payment, enabling the company to arrange necessary funds and ensure timely interest payment to bondholders In response, BVSC provided a comprehensive list of bondholders, including details on investor type, name, ID number, address, bank account number, and bond holdings, along with an official letter regarding interest payment to the Issuer.
Based on information from BVSC, FD checks and together with BVSC calculate the interest payable to bondholders
For example, in the first interest payment period, an institutional investor, Logistic
F Limited Liability Company, buys 2.100 bonds and the interest is calculated starting from 17/02/2022 As of 22/05/2022, the bondholder has held the bond for
94 days Logistic F LLC, does not have to pay personal income tax, so the interest profit received is VND 6.219.452.055 (calculated by 2.100*100.000.000 * 11.5% *
Individual investor Ms Nguyen Ha A purchased 200 bonds, with interest calculations commencing on December 2, 2022 By the time of the first interest payment, she had held the bonds for 171 days, resulting in a total profit before tax.
Ms Nguyen Ha A have to pay the personal income tax of 5%, equivalent to the amount of 53.876.712 ((5%* 1.077.534.247) so the actual interest profit received is VND 1.023.657.535.
The above figures will be update in a table with specific information on how to calculate and the final amount of interest to be paid to each bondholder (Annex 2).
Overall assessment of issuing corporate bonds procedure at CT Land Corporation
Regarding the implementation of the Interest payment and bond issuance process:
At CT Land, the bond issuance process is meticulously executed, adhering to the state's laws and the requirements of the Hanoi Stock Exchange (HNX) This process is further facilitated by the consultation and underwriting services of a reputable and experienced securities company, ensuring compliance and expertise Notably, CT Land's agency contract with BVSC enables the company to tap into BVSC's extensive customer network, thereby enhancing the efficiency and reach of the bond issuance process.
This mid-course internship report focuses on the process of corporate bonds, specifically detailing the principal and interest payment mechanisms at CT Land Corporation The report outlines the essential steps involved in managing corporate bonds, emphasizing the importance of understanding both principal repayment and interest disbursement By analyzing CT Land Corporation's practices, the report aims to provide insights into effective financial management and the implications of bond transactions in corporate finance.
CT Land Corporation streamlines the bond investment process by efficiently connecting with potential investors Utilizing a "24-hour principle," the company ensures that all submissions are reviewed and approved by the Board of Directors within one day of submission, thanks to their commitment to digitization and rapid approval workflows.
The interest payment process is enhanced by a comprehensive appraisal of the project's value conducted by a reputable organization prior to bond issuance, which mitigates risk and provides a guaranteed debt repayment source for investors This practice not only boosts the company's creditworthiness but also instills confidence in investors when purchasing bonds Furthermore, all interest calculations are meticulously double-checked by both the issuer and the securities company, with written notifications issued to ensure accuracy.
The Back Office of the Finance Department oversees the process, with each project assigned to a specific employee responsible for its management All tasks associated with each step of the process are submitted accordingly.
Manager and then CFO and BOD for review, evaluation and correction if there are mistakes
CT Land faces significant risk control challenges in the corporate bond issuance process, primarily due to its reliance on real estate as secured assets The long timelines for project completion and profit realization result in uncertain revenue, contributing to a low liquidity ratio for the company Furthermore, the potential decline in value of future projects amid market fluctuations raises concerns about CT Land's ability to meet bond principal and interest obligations.
CT Land Corp, being a private entity, can only issue bonds through private placements rather than public offerings This differentiates its bond issuance from corporate bonds, which require certificates of registration from the State Securities for public distribution.
Corporate bonds issued through private placements are not regulated by authorities and are typically limited to individual investors, which results in CT Land having to offer significantly higher interest rates to attract these investors.
This mid-course internship report explores the process of managing corporate bonds, focusing specifically on principal and interest payments at CT Land Corporation The report details the procedures involved in tracking and executing these financial transactions, highlighting the importance of accuracy and timeliness in bond management It also examines the implications of these processes on the overall financial health of the corporation, providing insights into best practices for effective bond administration.
.CT.LAND.CORPORATION rate for Bondholders and have to pay additional significant fees for services such as appraisal, advisory, underwriting, account management for the agency
This mid-course internship report outlines the process of corporate bonds, specifically focusing on principal and interest payments at CT Land Corporation The report details the mechanisms involved in managing these financial instruments, highlighting the importance of timely payments to bondholders Additionally, it emphasizes the role of corporate bonds in financing projects and the overall impact on the company's financial health Understanding these processes is crucial for effective financial management and investment strategies within the corporation.
THE OUTLOOK, RECOMMENDATIONS FOR
Outlook of CT Land Corporation
Firstly, the bonds market potential is huge due to the complete legal framework.
The regulations governing bond issuance have evolved significantly to enhance its role as a vital capital-raising channel for enterprises Since the implementation of Decree No 163 until the end of 2019, there have been 848 corporate bond issuances, totaling an impressive VND 259,377 billion This notable achievement underscores the bond market's substantial growth potential and its effectiveness in addressing the financial needs of businesses.
The demand for corporate bonds is increasing among investors, including individuals, due to their higher returns compared to traditional savings deposits With corporate bond yields surpassing commercial bank deposit interest rates by approximately 0.8%, these bonds are becoming an attractive investment option.
1.7%/year higher in 2020 and this gap will widen in 2021 and 2022, especially when commercial banks simultaneously decrease interest rates.
With 30 years of expertise in real estate development, CT Land is set to launch an IPO in 2022-2023, aiming to secure long-term capital while boosting brand awareness and market value This strategic move positions CT Land advantageously as Vietnam enhances credit ratings for both private and public bonds, promoting greater transparency and visibility in the corporate bond market.
This mid-course internship report focuses on the processes involved in corporate bonds, specifically detailing the principal and interest payment mechanisms at CT Land Corporation The report outlines the steps taken in managing corporate bond transactions, emphasizing the importance of timely payments and compliance with financial regulations It also highlights the role of accurate record-keeping and the impact of these processes on the overall financial health of the corporation Through this internship, valuable insights were gained into the intricacies of corporate finance and the significance of effective bond management.
Figure 3 1 Corporate bonds issuance in the first 6 months of 2022
January February March April May June
The Vietnamese bond market presents a significant challenge for the company, particularly with real estate bonds currently facing numerous issues linked to potential legal violations in capital mobilization from bond issuance This situation marks a troubling turning point for corporate bond fundraising, exerting pressure on banks and adversely impacting real estate companies and investors involved in the market.
The Ministry of Finance is set to tighten regulations on corporate bond issuance to address existing issues, enhancing deterrence measures and empowering the State Securities Commission in managing cash flow and capital mobilization The upcoming revised Decree 153 mandates that businesses must register and trade their bonds on the official market This new requirement presents a challenge for CT Land, as the company is not a public entity and is currently limited to issuing private placement corporate bonds.
This mid-course internship report focuses on the process of corporate bonds, specifically detailing the principal and interest payment procedures at CT Land Corporation The report outlines the significance of understanding bond mechanisms and their impact on corporate finance It provides insights into the steps involved in managing bond payments, ensuring compliance with financial regulations, and maintaining investor relations The findings emphasize the importance of accurate record-keeping and timely payments to uphold the corporation's financial integrity Overall, this report serves as a valuable resource for understanding corporate bond management within a corporate setting.
One significant challenge that enterprises, including CT Land, encounter when issuing bonds is the necessity for self-improvement in governance, finance, and information transparency to align with market demands.
3.2 Recommendations for improvement of Corporate Bonds Principal and Interest Payment Process at CT Land Corporation
CT Land will coordinate with relevant parties to enhance corporate bond transactions in the secondary market A vibrant secondary market allows for the wholesale and retail sale of bonds to a broader range of organizations and individuals, boosting bond liquidity This increased liquidity enhances market appeal and facilitates enterprises in conducting primary issuances, thereby mobilizing capital for production and business growth.
CT Land must enhance its risk management by strictly adhering to financial governance and implementing effective risk control measures for financing and investing activities Additionally, the company should closely monitor liquidity and utilize a robust risk assessment mechanism to track cash flows from ongoing projects, allowing for the early detection of cash flow risks This approach will improve creditworthiness and strengthen investor confidence in purchasing bonds.
To optimize its cost of capital, CT Land should cultivate and enhance relationships with both domestic and international financial institutions, including banks and investment funds This approach will enable the company to access a diverse range of capital sources through appropriate channels, such as credit, equity, bonds, and derivatives.
The department responsible for developing the capital raising plan must consistently update their knowledge of newly issued circulars, regulations, and laws regarding bond issuance They should also monitor the bond issuance market closely to make informed investment decisions, ensuring they are well-prepared for upcoming issuances and ready to revise documents as needed.
Regarding human resources, CT Land needs to stabilize personnel structure of
Finance Force in general and Finance Department in particular; provide ongoing
This mid-course internship report focuses on the process of corporate bonds, specifically detailing the principal and interest payment mechanisms at CT Land Corporation The report outlines the key functions and responsibilities involved in managing corporate bonds, emphasizing the importance of timely payments to bondholders Additionally, it highlights the financial implications of these transactions for the corporation and the overall impact on its fiscal health Through this internship experience, valuable insights into corporate finance practices and bond management strategies were gained, contributing to a deeper understanding of the financial sector.
CT.LAND.CORPORATION is committed to enhancing the skills of its Finance Force staff through advanced training tailored for all experience levels To support this initiative, the company aims to develop a comprehensive human resources plan for the next five years Collaborating with leading universities in Ho Chi Minh City, including Foreign Trade University, University of Economics Ho Chi Minh City, and Banking University of Ho Chi Minh City, will enable access to a pool of young and talented professionals.
This mid-course internship report details the process of managing corporate bonds, specifically focusing on principal and interest payments at CT Land Corporation The report outlines the key procedures involved in tracking and executing these financial transactions, emphasizing the importance of accuracy and compliance in bond management It also highlights the role of effective communication within the finance team to ensure timely payments and maintain investor trust Overall, the internship experience provided valuable insights into the complexities of corporate finance and the critical nature of bond management in a corporate setting.