CORPORATION INTRODUCTION
Introduction
Legal international name: CT LAND CORPORATION Legal vietnamese name: CÔNG TY CỔ PHẦN BẤT ĐỘNG SẢN CT Abbreviation: CTLAND
Tax code: 0306240094 Head office: 117 Nguyen Dinh Chieu, Vo Thi Sau Ward, District 3, Ho Chi Minh City, Viet Nam
Tel: 08 6297 1936 Website: https://ctland.com.vn/
Email: info@ctland.com.vn Charter capital: 4,200,000,000,000 VND (in words: four thousand two hundred billion Vietnamdong)
Business sectors: Multi-industry development company, service with 4 main industries including:
This mid-course internship report focuses on the corporate bonds issuance procedure at CT Land Corporation The report outlines the steps involved in the issuance process, highlighting the importance of compliance with regulatory requirements and effective communication with stakeholders It also discusses the role of market analysis in determining the timing and pricing of bond offerings, as well as the impact of economic conditions on investor interest Overall, the report provides valuable insights into the complexities of corporate bond issuance within the context of CT Land Corporation's operations.
1.2 Brief history and development of CT Land
CT Land Corporation was established as a corporation in charge of real estate under
CT Group aims to be a leading urban developer, with CT Land specializing in Transportation Oriented Development (TOD), which integrates real estate development with transportation infrastructure for comprehensive urban planning Backed by over 30 years of consistent support from CT Group and its retail system, CT Land has established itself as a premier and distinctive real estate developer in Vietnam, focusing on Transportation Oriented and Integrated Townships Development.
From the initial registered charter capital of only 6 billion VND, until now CT Land's charter capital has reached 4,200 billion VND.
To support its rapid growth, the company has implemented a centralized cost center system along with multiple profit centers, leading to a substantial decrease in operational costs In line with international best practices, CT Land has also adopted the latest IFC Corporate Governance standards.
CT Land operates nationwide, with its headquarters situated in Ho Chi Minh City and over 30 branches and transaction offices across various provinces and cities.
Mission – Core values
CT Land aims to develop sustainable cities powered by 3 key factors:
The mid-course internship report focuses on the corporate bonds issuance procedure at CT Land Corporation This report outlines the essential steps involved in the issuance process, including regulatory compliance, documentation requirements, and the roles of various stakeholders It highlights the significance of corporate bonds as a financing tool for the organization and emphasizes the importance of understanding the procedural intricacies for successful execution Overall, the report serves as a comprehensive guide to navigating the corporate bonds issuance landscape within CT Land Corporation.
Deliver the dream working environment, the basis for comprehensive human development
CT Homes, branded as "DIYAS," is pioneering a technology-driven housing solution tailored for the affordable housing sector To meet the significant demand for affordable housing, CT Land aims to deliver 100,000 studio apartments between 2021 and 2025, with a long-term goal of providing up to 1,000,000 units by 2045.
CT Town specializes in projects covering less than 3 hectares, strategically situated in prime areas of Ho Chi Minh City, including key districts and along major thoroughfares like Pham Van Dong Avenue, Ha Noi Highway, Ring Road 2, and the Metro Lines No 1 and 2.
CT World: CT World is the long-term strategy product line of CT Land CT World
The mid-course internship report focuses on the corporate bonds issuance procedure within CT Land Corporation This process is crucial for facilitating the development of diverse retail establishments, including retail chains, mega malls, and commercial food and entertainment centers By fostering a successful ecosystem, CT Land Corporation aims to enhance the economic vitality of its townships and mega townships.
CT Com provides customizable commercial assets with diverse layout designs tailored to various business needs, ranging from 10 m² to 200,000 m² in floor area Located along prominent commercial and financial corridors in major cities, CT Com offers a range of spaces, including commercial, office, and logistical facilities Additionally, the company develops tourism projects that reflect a philosophy of harmony and solidarity between people and nature.
Business Structure
The mid-course internship report focuses on the corporate bonds issuance procedure at CT Land Corporation This report outlines the key steps involved in the issuance process, highlighting the importance of regulatory compliance and financial assessment Additionally, it discusses the roles of various stakeholders, including underwriters and legal advisors, in facilitating successful bond issuance Understanding these procedures is crucial for ensuring transparency and efficiency in the corporate financing landscape.
Playing a powerful role of real estate segment of CT Group, the scale and organizational structure of CT Land is extremely clear and professional.
General shareholders: the owners of CT Land, provide financial backing for potential dividends (profits) of the corporation.
Board of directors: to recruit, keep track, direct the company’s plans.
CEO/President: to be responsibilities for their major department in a whole, manage the operation.
To advise and assist the Directors in synthesizing, developing and implementing work programs and strategies; Synthesize planning, finance, investment in development of science, technology and innovation.
Manage revenue, quantity, liabilities, inventory, fixed assets
To monitor and check the quality of work and products of other departments to provide customers with high quality service.
Building PR and marketing strategies for products in each segmentation…
The mid-course internship report focuses on the corporate bonds issuance procedure within CT Land Corporation This report outlines the essential steps involved in the issuance process, highlighting key practices and regulatory requirements It serves as a comprehensive guide for understanding how CT Land Corporation navigates the complexities of corporate bond issuance, ensuring compliance with industry standards and optimizing investment opportunities Through this analysis, the report aims to provide valuable insights into the financial strategies employed by the corporation in the bond market.
3.2 Position during the mid-course internship and duties undertake
The financial force of a company is primarily divided into two key departments: Finance and Accounting This article focuses specifically on the Finance department, which plays a crucial role in preparing the company's financial statements, recording transactions, and determining product pricing Additionally, the Finance department supports the Front office in managing customer interactions effectively.
The mid-course internship report focuses on the issuance procedure of corporate bonds within CT Land Corporation This report outlines the key steps involved in the bond issuance process, emphasizing compliance with regulatory standards and the importance of effective communication with stakeholders Additionally, it highlights the role of market analysis and financial forecasting in determining the optimal timing and structure for bond offerings Overall, the report serves as a comprehensive guide for understanding the intricacies of corporate bond issuance in the context of CT Land Corporation's operations.
Right from the beginning of the internship at CT Land Corporation, the author was assigned by the Finance Manager – Nguyen Thi Minh to undertake the following tasks:
To have basic understanding of legal brief of Real Estate projects, the author would regularly research the relevant documents and related laws/regulation
To get enough documents to standardize a dossier, the author had the opportunity to contact other departments
The Head of Department will evaluate the author's knowledge and research skills to ensure they can effectively manage and communicate information about specific projects and products During this process, the author will gain direct access to crucial data, including sales performance, financial statements, and relevant regulatory procedures.
The author's assigned tasks have provided valuable insights into the nature of corporate bonds issued by CT Land Corporation, which is crucial for the successful completion of this report.
Business situation period 2018 – 2021
Between 2019 and 2021, the economy, particularly the real estate sector, faced significant fluctuations due to the COVID-19 pandemic, which impacted business conditions The accompanying table illustrates these changes.
The mid-course internship report focuses on the corporate bonds issuance procedure at CT Land Corporation This report outlines the essential steps involved in the issuance process, highlighting the significance of corporate bonds in financing and investment strategies It provides insights into the regulatory requirements, market analysis, and risk assessment necessary for successful bond issuance Additionally, the report emphasizes the role of effective communication and stakeholder engagement in facilitating a smooth issuance process Overall, this internship experience has enhanced my understanding of corporate finance and the intricacies of bond markets.
Source: Consolidated Financial Statements in 2018,2019,2020,2021 of CT Land
In 2019 City Land witnessed remarkable growth in Total Assets revenue and profit Total Access were recorded at 7167.3 million VND, 33.11% higher compared to
2018 this increases due to a series of mergers and Acquisitions of its subsidiary companies Consequently, the company makes significant progress concerning operating revenue.
By the end of 2020, CT Land reported a bank loan to total assets ratio of just 6%, with no outstanding bonds, indicating a strong financial position According to the Credit Information Center (CIC), CT Land has maintained a clean credit record over the past five years, significantly below the industry average of approximately 60% This low debt level highlights the company's robust financial potential and substantial growth opportunities for the future.
CT Land has experienced an astonishing revenue growth rate of 2121.9%, attributed to the launch of new projects and the operational commencement of existing ones, which have significantly boosted short-term receivables from sales and services.
Table … has drawn the fact that 2020 is a challenging year for CT Land As the company faced a decline in revenues and profits related to the same period last year.
Between 2019 and 2020, revenue plummeted over 57.6%, resulting in a significant drop in profit before tax, which fell to only 95.78 billion VND, an 85% decrease from 2019 levels This decline is primarily attributed to the severe impact of the COVID-19 pandemic, which adversely affected the entire bear industry.
The mid-course internship report on the corporate bonds issuance procedure at CT Land Corporation highlights the significant influence of the board of directors on the company's operations In 2021, despite modest growth, CT Land demonstrated a positive trajectory, signaling a promising outlook for the future.
The mid-course internship report focuses on the corporate bonds issuance procedure at CT Land Corporation This report outlines the essential steps involved in the issuance process, highlighting the importance of regulatory compliance and market analysis It also examines the role of financial advisors and underwriters in facilitating successful bond offerings By understanding these procedures, stakeholders can better navigate the complexities of corporate financing through bonds.
CORPORATE BONDS ISSUANCE PROCEDURE IN CT LAND CORPORATION
Analysis of corporate bonds issuance procedure in CT Land Corporation
Issuance method: Issuance agency Issuance agency: Bao Viet Security ar value: 100,000,000 VND/bond Maturity: 18 months
Issuer CFO FD Assistant BOD
Approvement Adj ust me nt
The mid-course internship report focuses on the corporate bonds issuance procedure at CT Land Corporation This report outlines the steps involved in issuing corporate bonds, emphasizing the importance of compliance with regulatory requirements and financial guidelines It highlights the role of market analysis in determining the appropriate timing and terms for bond issuance, as well as the necessity of effective communication with stakeholders Additionally, the report discusses the impact of corporate bonds on the company's capital structure and investment strategy, providing insights into the financial implications of this funding method.
Step 1 Fin Dep cooperates with the Issuer to develop and submit the plan of issuance corporate bonds
To align with the business plan and strategic direction for CT Land projects, a corporate bond issuance plan will be developed to effectively raise capital for project construction and reinvestment needs.
FD will present the corporate bond issuance plan to the Assistant General Director and Board of Directors (BOD) If deemed unsuitable, adjustments will be requested; however, if the plan meets their criteria, it will receive approval.
Step 2 Conduct bond issuance procedure
FD registers business information on the Stock Exchange (HNX or HOSE):
The mid-course internship report focuses on the corporate bonds issuance procedure at CT Land Corporation This report outlines the essential steps involved in the issuance process, emphasizing the importance of compliance with regulatory standards and effective communication with stakeholders It also highlights the strategic role of corporate bonds in financing projects and enhancing the corporation's financial stability By analyzing this procedure, the report provides valuable insights into the operational framework and best practices within the corporate finance sector.
+ The issuer registers to use the corporate bonds specialized website.
FD and Issuance agency directly work together (consultants and issuance agency) FD will collect company information (the Issuer) for the disclosure.
+ Securities company advises on the organization and implementation of procedures related to bond issuance.
+ FD prepares full legal procedures for projects related to bond issuers.
FD/Issuers signs a number of contracts with securities companies:
+ Consulting contract and bond issuance agency.
+ Agency contract for registration, depository, payment and management of Bond transfer.
Securities company plays the role:
+ Consult and review necessary legal procedures.
+ Consulting on the release plan.
+ Underwriting of Bonds Issuance / Intermediaries for buying and selling Bonds.
+ Distributing Bond products thanks to a diverse network of institutional and individual customers.
+ Prepare bond purchase and sale documents and guide the issuer of the procedures after
This mid-course internship report focuses on the corporate bonds issuance procedure at CT Land Corporation It outlines the key steps involved in the process, including the preparation of necessary documentation, regulatory compliance, and investor engagement strategies The report also highlights the importance of effective communication and coordination among various stakeholders to ensure a successful bond issuance By analyzing the current practices and identifying areas for improvement, this report aims to enhance the overall efficiency of corporate bond issuance within the organization.
FD/Issuers collaborated with the Bank to establish several key agreements, including an Account Management Contract, which facilitated the opening of a blocked account for receiving funds from bond issuances Additionally, they signed a Guaranteed Asset Management Contract and a Mortgage of Collateral Contract, ensuring proper notarization and registration of secured transactions with the relevant authorities.
Step 3 Disclosure before the offering
The Corporation has announced the issuance of Bonds for investors, providing the relevant disclosure information to the Stock Exchange The enterprise is required to complete the distribution of these bonds within 90 days from the date of this disclosure.
- Securities companies and FD/Issuer conduct a research and make a list of investors wishing to purchase Bonds.
Only professional investors are eligible to purchase bonds, including commercial banks, financial firms, and securities companies Additionally, companies must have a charter capital exceeding 100 billion VND or be listed or registered for trading Individuals can also qualify if they hold listed or registered securities valued at a minimum of 2 billion VND or have a taxable income of at least 1 billion VND in the previous year.
Provide and clarify information for investors, guide the procedure for buying Bonds for investors When an investor decides to buy a bond, processing as follow:
+ Bond booking Contract + Bond purchase and sale Contract.
Investors contribute funds to purchase bonds based on a mutually agreed arrangement with the issuer, facilitated through an agreement with the bank managing the creditor's account.
The mid-course internship report focuses on the corporate bonds issuance procedure at CT Land Corporation This report outlines the essential steps involved in the issuance of corporate bonds, detailing the regulatory framework, documentation requirements, and the overall process Understanding these procedures is crucial for effective financial management and investment strategies within the corporation The report aims to provide insights into best practices and compliance standards that ensure successful bond issuance, contributing to the corporation's growth and financial stability.
Securities Company confirms ownership of Bonds and sends depository information an issue the Certificate of Bond ownership to the Buyer after the Buyer has completed the payment.
Step 5 Report on Bond Issuance Results
Report the results of bond issuance to the Stock Exchange within 10 days from the end of the bond issuance The official report would be notified on the specialize website.
Step 6 Follow up after bond issuing
The FD/Issuer conducts quarterly monitoring and reporting to the Stock Exchange, while also coordinating with the account management bank to effectively manage proceeds from bond issuance and ensure project disbursement upon receipt of adequate and appropriate payment documentation.
Step 7 Summarize and save documents
The FD/Issuer regularly oversees and fulfills bond principal and interest payments as stipulated, while also providing essential information and reports to bondholders, depository institutions, and the Stock Exchange Additionally, the Issuer, FD, and AD systematically collect and maintain all pertinent records in compliance with CT Land regulations.
A commitment is made to pay either the full or partial interest and principal at maturity, utilizing the issuer's assets or third-party assets, in compliance with the legal framework governing secured transactions.
The mid-course internship report focuses on the corporate bonds issuance procedure at CT Land Corporation This report outlines the key steps involved in the process, emphasizing the importance of compliance with regulatory standards and the strategic role of corporate bonds in financing corporate projects It also highlights the collaboration between various departments to ensure a seamless issuance process, ultimately contributing to the financial stability and growth of CT Land Corporation.
Collateral for the Léman Cap Residence project in Vung Tau includes land use rights and future assets, with a contract value assessed by the Viet Nam Assessment and Evaluation Assets Joint Stock Company (VAAE).
Additional measures: payment guarantee by CT Land Corporation.
The evaluation of corporate bonds issuance procedure in CT Land Corporation 22 1 Strengths
The bond issuance process is essential for companies looking to raise capital through the stock market By leveraging its reputation and attractive yields, the company successfully attracted significant investment from bond buyers This strategic move, while impacting the total assets to capital ratio, has enabled the company to fund the Metro Star project and position itself for a projected revenue surge of 8,600 billion by 2025.
The Finance Department has an independent and cooperative way of working, each member of the committee is given the right to self-determination when assigned tasks,
The mid-course internship report on corporate bonds issuance procedures at CT Land Corporation outlines the protocol for addressing incidents within the organization Employees are empowered to resolve issues independently or collaborate with colleagues before escalating matters to senior management, including the department head or CFO, ensuring a supportive and efficient problem-solving environment.
In 2021, real estate businesses issue bonds with a total value of about 200,000 billion VND, accounting for about 33.16% of the total volume of corporate bonds issued.
Analysis based on total market capitalization, the Real Estate industry accounts for about VND 1.56 million billion, equivalent to 21% of the total market value.
In April 2022, the real estate industry's impact was highlighted when Tan Hoang Minh raised VND 10,000 billion through bonds, yet the domestic bond market remained dominated by the banking sector, which accounted for 90.7% Notably, there were no bond issuances from real estate companies, leading to a total bond value of VND 16,472 billion, reflecting a significant decrease of 23.2% from the previous month.
As a real estate company, relying solely on bond issuance has proven inadequate to meet financial needs Given the capital-intensive nature of the industry, it is essential to diversify funding sources significantly Consequently, the over-reliance on bonds necessitates stringent regulations to ensure proper utilization of funds and to prevent market manipulation.
Tightening bonds issuance regulations: Decree No 153/2020/ND-CP dated December
31, 2020 stipulating the private offering and trading of corporate bonds in the domestic market and the offering of corporate bonds to the international market has negatively
The mid-course internship report on the corporate bonds issuance procedure at CT Land Corporation outlines the essential steps involved in the process, highlighting the role of the issuer and the purpose behind the bond issuance Typically, this process includes mergers and acquisitions, which may involve the acquisition of shares or specific projects Understanding these elements is crucial for navigating the complexities of corporate financing and investment strategies.
CT Land, a private corporate bond issuer, is significantly impacted by Decree 153 The company is currently focused on two primary projects that remain unfinished, leading to revenue that fluctuates with construction progress and a low liquidity ratio As a result, the tightening of state bond issuance regulations poses potential challenges for CT Land's financial stability in the future.
This mid-course internship report focuses on the corporate bonds issuance procedure at CT Land Corporation It outlines the steps involved in the bond issuance process, highlighting the importance of regulatory compliance and financial analysis The report emphasizes the role of corporate bonds in financing projects and enhancing liquidity for the corporation Additionally, it discusses the strategic considerations that influence the timing and structure of bond offerings, aiming to provide a comprehensive understanding of the corporate finance landscape within CT Land Corporation.
CHAPTER 3: LESSON LEARNED AND RECOMMENDATIONS FOR IMPROVING THE EFFECTIVENESS OF CORPORATE BONDS ISSUANCE PROCEDURE IN CT LAND CORPORATION
Lesson learned from the practice study and the internship period
During my internship at CT Land Corporation, I gained valuable insights into the finance sector while applying my university knowledge The dedicated internship supervisors provided enthusiastic guidance, sharing important tips and invaluable experiences from their own careers This supportive environment allowed me to feel comfortable and confident throughout my internship journey.
Accordingly, the author has accumulated a number of lessons for himself as follows:
During the university lecture, the author gained theoretical knowledge on bond analysis and issuance, but the internship provided a practical understanding, particularly in real estate Initially, the author faced challenges in grasping the process steps and lacked familiarity with professional reporting standards The complexity of real-world bond issuance contrasted sharply with academic teachings However, with the enthusiastic support of Team BO, the author acquired valuable insights not only into the bond issuance process but also into related operations such as M&A, IPO, DD, and FS.
This mid-course internship report focuses on the corporate bonds issuance procedure at CT Land Corporation It outlines the essential steps involved in the process, including regulatory compliance, documentation requirements, and stakeholder engagement The report emphasizes the importance of understanding market conditions and investor expectations to successfully execute bond offerings Additionally, it highlights the role of financial analysis and risk assessment in determining the appropriate bond structure and pricing strategy Overall, this report serves as a comprehensive guide to the corporate bond issuance process within CT Land Corporation.
Recommendation for improving the effectiveness of corporate bonds issuance
At Phuong Dong Garment Joint Stock Company, the author observed strong management support and effective interdepartmental collaboration, which facilitated the delivery service for forwarders To enhance this process further, specific solutions are necessary for continuous improvement.
The mid-course internship report focuses on the corporate bonds issuance procedure within CT Land Corporation This report outlines the key steps involved in the issuance process, highlighting the importance of compliance with regulatory standards and effective communication with stakeholders It emphasizes the role of corporate bonds in financing projects and enhancing the corporation's capital structure, providing valuable insights into the operational aspects of bond issuance in a corporate setting The findings aim to contribute to a better understanding of the financial mechanisms at play within CT Land Corporation.