FOREIGN TRADE UNIVERSITY

HO CHI MINH CITY CAMPUS

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MID-COURSE INTERNSHIP REPORT

Major: International Finance

THE PROCESS OF CORPORATE BONDS

PRINCIPAL AND INTEREST PAYMENT AT
CT LAND CORPORATION

Student: Đinh Hà Phương

Student ID: 1913316133
Class: K58CLC2
Supervisor: Chu Mai Linh

Ho Chi Minh City, August 2022

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FOREIGN TRADE UNIVERSITY SOCIALIST REPUBLIC OF VIETNAM
HO CHI MINH CITY CAMPUS Independence - Freedom - Happiness

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 DECLARATION

I hereby declare this report “The Process of Corporate Bonds Principal and Interest
Payment at CT Land Corporation” is my own research work for the purpose of
presenting my experiences from the mid-term internship period. Except where
reference is made in the text of the report, this report contains no material published
elsewhere. No other person's work has been used without due acknowledgments in
the report.

This report has not been submitted for the award of any degree or diploma in any
other tertiary institution. I shall take full responsibility for this commitment.

Ho Chi Minh City, August 2022

Student

Đinh Hà Phương
 ACKNOWLEDGEMENT

This report is the result of my internship at position of Finance Intern at CT Land

Corp., which is a great opportunity for me to improve my professional knowledge,
gain practical experiences and attain more helpful knowledge. Therefore, I am
grateful for this precious opportunity and for those who have assisted me directly or
indirectly in completing the internship report.

First of all, I would like to express my gratitude and appreciation to Ms. Tran Khue
Giao – President of CT Land Corp. for facilitating the opportunity to perform my
internship at the company. In addition, I would like to thank my mentor, Ms.
Nguyen Thi Minh – Finance Manager, for directly supports me with valuable
instructions and dedicated advice, which made up an important foundation for me to
build up this paper and all the members of the Finance Department for their
enthusiastic guidance and for creating good conditions for me to learn as well as
sharing valuable work experiences so that I can supplement my knowledge.

With my endeavour to accomplish the report, I was constantly trying to gather

information, brainstorm ideas, and draft the outline. Obviously, despite my great
effort and concentration, this report cannot be completed without any mistakes.
Therefore, I want to show my most profound appreciation for my supervisor, Ms.
Chu Mai Linh, who accompanied me throughout the reporting period and gave me
many detailed recommendations on improving my report. I wish you all the best,
and I hope that I can have another chance to work with you in the future.

Finally, my deepest thanks come to the teachers at Foreign Trade University – Ho

Chi Minh City Campus for their enthusiasm and dedication to teaching and for
equipping me with a good foundation of professional knowledge during the past
three years of study.
 TABLE OF CONTENTS
LIST OF ABBREVIATIONS..................................................................................i
LIST OF TABLES AND FIGURES......................................................................ii
PREFACE................................................................................................................ 1
CHAPTER 1: INTRODUCTION OF CT LAND CORPORATION..................3
1.1 Overview of CT Land Corporation................................................................3
1.1.1 General information of CT Land Corporation.......................................3
1.1.2 Brief history and development of CT Land Joint Stock Company........3
1.1.3 Structure of the Finance Department at CT Land Corporation..............4
1.1.5 Financial health and business outcomes of CT Land Corporation in
2018-2020.......................................................................................................6
1.2 Summary of internship activities....................................................................9
CHAPTER 2: PROCESS OF CORPORATE BONDS PRINCIPAL AND
INTEREST PAYMENT AT CT LAND CORPORATION................................11
2.1 Overview of corporate bonds issuance at CT Land Corporation..................11
2.2 Payment of bond principal and interest process...........................................15
2.2.1 Before issuing bonds............................................................................15
2.2.2 When the bonds have just been issued.................................................17
2.2.3 At interest payment period...................................................................18
2.3 Overall assessment of issuing corporate bonds procedure at CT Land
Corporation........................................................................................................20
2.3.1 Strengths..............................................................................................20
2.3.2 Limitations...........................................................................................21
CHAPTER 3: THE OUTLOOK, RECOMMENDATIONS FOR
IMPROVEMENT IN CORPORATE BONDS PRINCIPAL AND INTEREST
PAYMENT PROCESS AT CT LAND CORPORATION.................................22
3.1 Outlook of CT Land Corporation.................................................................22
3.1.1 Opportunities.......................................................................................22
3.1.2 Challenges...........................................................................................23
 3.2 Recommendations for improvement of Corporate Bonds Principal and
Interest Payment Process at CT Land Corporation.............................................24
CONCLUSION......................................................................................................26
REFERENCES......................................................................................................27
ANNEX..................................................................................................................... a
Annex 1................................................................................................................a
Annex 2................................................................................................................c
Annex 3................................................................................................................ d
i

LIST OF ABBREVIATIONS

Abbreviation In English
Corp. Corporation
JSC Joint Stock Company
LLC Limited Liability Company
BOD Board of Directors
CFO Chief Finance Officer
FD Finance Department
LCR Léman Cap Residence
BVSC Bao Viet Securities Company
ii

LIST OF TABLES AND FIGURES

LIST OF TABLES
Table 1. 1 The business outcome of CT Land Corporation in 2018-2020.................6
Table 1. 2 Projected Revenue for the period of 2021-2025.......................................8

Table 2. 1 Information of Casablanca Bonds...........................................................14

Table 2. 2 Information of Casablanca Bondholders.................................................14
Table 2. 3 Situation of using capital raised from Bonds..........................................15
Table 2. 4 Projected cash flow plan for bond principal and interest payment..........16
Table 2. 5 Interest paid to bondholders on the first interest payment period...........20

LIST OF FIFURES
Figure 1. 1 Organizational structure of the Finance Department at CT Land
Corporation................................................................................................................ 5

Figure 2. 1 Corporate bond issuance flowchart at CT Land Corporation................12

Figure 3. 1 Corporate bonds issuance in the first 6 months of 2022........................23

 1

PREFACE
Vietnam's bond market was formed in the 1990s and started to develop in 2000. In
the period from 2011 to now, the bond market has developed strongly to meet the
capital mobilization requirements of the government, local authorities, policy banks
and corporates.
It can be said that the corporate bond market is a profitable capital mobilization
channel for real estate corporations to develop production and business as well as
construction of new projects. In 2022, when the economy began to recover from
COVID-19 pandemic, the demand for capital mobilization of enterprises is
expected to continue to increase. However, the unsustainable growth of the
corporate bond market will affect the financial market in general and affect the
capital raising demand of businesses for the purpose of investment, development,
and business expansion.
Macro economy has many difficulties; Liquidity of apartment transactions has not
been able to recover as before; Bond maturity pressure is high while capital for real
estate is under strict control are the cause of poor financial health of real estate
enterprises. However, as one of the big companies in the real estate industry with a
history of more than 30 years, CT Land Corporation is confident that by providing
projects serving the real needs of customers and investors, these difficulties are also
CT Land's opportunity.
With the hope of understanding the external siatuation and internal operation,
thereby drawing practical knowledge about this profession, I decided to choose
"Corporate bonds issuance procedure at CT Land Corporation" as the topic in my
internship report. The outline of this mid-course internship report contains three
main chapters:
Chapter 1: Introduction to CT Land Corporation.
Chapter 2: Process of corporate bonds principal and interest payment at CT Land
Corporation.
Chapter 3: The outlook, oriented development, recommendations for improvement
in corporate bonds principal and interest payment at CT Land Corporation.
This report aims to show clearly how Finance Department at CT Land Corporation
 2

deal with capital mobilization by issuing corrporate bonds through my observation

during my internship. In spite of my hard work, this report cannot demonstrate and
explain in full details of the corporate bond issuance procedure in this company due
to my limited knowledge and short-time of internship, and it may contain many
inevitable errors and mistakes. I look forward to receiving comments and feedbacks
from my supervisor to make it better.
 3

CHAPTER 1: INTRODUCTION OF CT LAND CORPORATION

1.1 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 is a company belonging to CT Group Joint Stock Company,
established to operate in the field of real estate. Currently, CT Land is focusing on 4
key real estate industries including: residential - retail - logistics - tourism.
With more than 30 years of operating history and being one of the longest operating
private enterprises in Vietnam, CT Land has accumulated vast experiences in
developing projects in a wide range of real estate segments including all residential
segments (luxury, highend, mid end and affordable), supermarkets, shopping malls,
offices, logistics,...
CT Land has grown strongly with more than 36 member companies, 2,000
employees working in many different fields, won more than 100 awards in both
domestic and international, of which must be mentioned the First-class Labor Medal
awarded by the President of Vietnam, Agoda.com's 2018 Gold Circle Awards, Dot
Property Vietnam “Best Innovative Green Building”, “Best Mixed-use Architecture
Design” Award and many awards from the Government and the Press.
 4

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
WestPoint.
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
Product Development (IPD) team. In which, the Back Office will be the team that
prepares the plans, reports, statements and all the essential documents related to the
project and provides it to the Front Office. Based on documents collected from the
BO team, Front Office is responsible for communicating and dealing with partners
about business cooperation or capital raising. The name of IPO team and IPD team
is also the subjects to which such team is responsible.
 5

Figure 1. 1 Organizational structure of the Finance Department at CT Land

Corporation

Finance Force

Accounting
Finance Department
Department

Front Office Back Office IPO IPD

International
Domestic Finance
Finance

Financial Individual
Intermediates customers

Source: CT Land Corporation

1.1.4 Main products
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:
CT Homes
Commercially known as "DIYAS“, is the first 4.0 technology-based housing
product line serving the affordable housing market, with the goal of solving the
hugely unmet affordable housing market demand and providing housing for yound
people.
CT Town
This product line focuses on projects with land size of less than 3 hectares, located
in prime location at centers of Ho Chi Minh City’s District and along city arterial
roads such as Pham Van Dong Avenue, Ha Noi Highway, Ring Road 2 and Metro
Lines No. 1 and 2.
CT World
 6

CT World is the long-term strategy product line of CT Land. CT World utilizes all
strengths CT Group has built over its 30 years history to develop an ecosystems for
its townships and mega townships.
CT Com
CT Com are commercial assets with diverse layout designs according to business
needs -from scale as small as 10 m2 to 200,000 m2 in floor area. CT Com offers
commercial, office, logistical spaces located on large frontage of the busy
commercial and financial axes of big cities. It also offer tourism projects with
design embodies the philosophy of solidarity and harmony between people 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-
2021. The collected data is based on the company's consolidated financial
statements in 2018-2021. Due to progess of construction and handing over to
customers, the company's growth rate has changed significantly from year to year.
Table 1. 1 The business outcome of CT Land Corporation in 2018-2020
Unit: billion VND
2018/2019 2019/2020 2020/2021
2018 2019 2020 2021
(%) (%) (%)

Total Assets 5.384,2 7.167,4 7.849 9.521,96 33,12% 9,51% 21,31%

Net Revenue 48,53 1.078,3 456,73 4.714,10 2.121,9% - 57,64% 932,14%

Gross profit 7,17 319,2 2,72 57,84 4.351,88% -99,14%

Profit before
328,77 643,38 95,78 5,07 95,7% -85,11%
tax
Profit after
197,23 596,94 92,45 54,55 202,66% -84,51%
tax

ROE 18.99% 36.63% 1.26% 7.82%

 7

Source: Consolidated Financial Statements in 2018, 2019, 2020 of CT Land

JSC

In 2019, CT Land witnessed a remarkable growth in total assets, net revenue and
profit. Total assets were recorded at VND 7.167,3 billion, 33.11% higher compared
to 2018. This increase is due to a series of mergers and acquisitions of its subsidiary
companies. Consequently, the company has made significant progress concerning
operating revenues. It can be seen from the table that growth rate in CT Land’s
revenue is unbelievable when it grows 2121.9%. This can be explained by the
construction of new projects, putting some projects into operation and the collection
of short-term receivables from sales of goods and rendering of services to
customers.
Table 1.1 has drawn the fact that 2020 is considered a challenging year for CT Land
as the company has faced a decline in revenues and profits relative to the same
period last year. Revenue fell more than 57,6% during 2019-2020, leading to a
sharp decline in profit before tax, which still only recorded at VND 95,78 billion,
equivalent to a decrease of 85% compared to 2019. It is largely explained by the
severe impact of the COVID-19 pandemic. Overall, the whole beer industry is
negatively affected as a part of the economy. Therefore, the decline in these
numbers is entirely understandable.
However, with the experience drawn from the year of 2020 and preparation of
contingency plans, the observation of market situation and assessment of financial
impacts by the Board of Directors, the year 2021 shows a prosperity of CT Land,
although not much, but still a positive signal.
Debt situation
According to the Credit Information Center, as of March 2021, CT Land has no
debt at any financial or credit institutions (According to the consolidated financial
statements, CT Land has very low debt in its subsidiary companies). That proves
the sound financial management as well as financial potential for development in
the next period.
Valuation of projects
 8

CT Land is developing 80 projects, of which only 15/80 projects have been valued
at more than USD 1.27 billion by Colliers International (UK) (equivalent to more
than VND 29.265 billion).
Land bank
CT Land’s current land bank is approximately 8.875.000 m2. Land bank will
expand in the period of 2021 – 2025. Owning a large land bank is one of the proofs
of investment efficiency. This will be an advantage for CT Land to quickly become
a target for domestic and foreign investors, especially in the context that "cheap
capital" flow is appearing in the market.
Projected Revenue and Cash Flow for the period of 2021-2025
This projection is only based on the 20 projects mentioned below. As can be seen
from Table 1.2, projected revenue has a significant growth rate, especially from
2023. By 2025, the total projected revenue from 20 projects will reach more than
USD 3.200 million (VND 75.000 billion), the total projected revenue from before
2021 to 2025 will reach the level of more than USD 9.000 million (VND 210.000
billion). This number will increase significantly when the land bank is developed
every year.
Table 1. 2 Projected Revenue for the period of 2021-2025
Unit: million USD
 9

Source: CT Land Profile, 2022

In addition to the above 20 projects, CT Land continues to develop many other
new projects, which are expected to bring in additional revenue of 5.000 –
10.000 billion VND per year.
Figure 1.2. Projected Cash Flow for the period of 2021-2025
Unit: million USD

Source: CT Land Profile, 2022

1.2 Summary of internship activities
My position is a Finance Intern of Financial Department, which belongs to Finance
Force. My internship at CT Land JSC was set forth on March 14th, 2022 up to the
present. Over the course of four months being an intern in the Back Office of
Finance Department, I have had the opportunities to learn and experience much new
practical knowledge from my manager and colleagues. Therefore, I stood the
chance to get acquainted with the work related to capital raising by issuing
corporate bonds, specially as follows:
At the beginning, I was assigned to read the legal documents related to all the
projects that have been completed and are under construction by the Company to
ensure that I fully understand all the key information, the legal status and
construction progress of each project so that I can assist my manager in preparing
the loan/debt application.
 10

After that, I was trained on how to analyze financial statements and learned about
Feasibility Study as well as key ratios in a Feasibility Study to help prepare
financial plans and fundraising plans for each project: Borrowing from domestic
banks, issuing bonds, borrowing from international funds, ...
I also support my team in drafting, translating documents into English (for
international deals), arranging and packing all the necessary documents into a file
for the Front Office team to deal with partners about capital raising, including the
bond issuance file.
Although it is only been 4 months since my internship here, I did get exposure to
the professional working environment and understand how a bond issuance
procedure really works, as well as have a chance to apply what I have learned in the
university to the process in reality. Moreover, this internship also provides me the
preparing step in choosing my future careers after graduating in the next year.
 11

CHAPTER 2: PROCESS OF CORPORATE BONDS

PRINCIPAL AND INTEREST PAYMENT AT CT LAND
CORPORATION
2.1 Overview of corporate bonds issuance at CT Land Corporation
Issuing bonds is considered one of the ways to help real estate businesses those
have not yet IPO, mobilize capital to develop projects based on advantages such as
high interest rates, short interest payment periods.
To get a deep understanding of the process of paying corporate bonds’ principal and
interest, we first have to understand the corporate bonds issuance procedure at CT
Land Corp. Chart 2.1 demonstrates steps in the procedure of issuing corporate
bonds at CT Land Corp. Following the figure is my brief explanation
for the overall procedure, and at the same time I will give a practical example of the
bonds issuance process to raise capital for the Léman Cap Residence project
developed by Casablanca Joint Stock Company – a subsidiary of CT Land Corp.,
which is also the bond issuer.
The process of issuing corporate bonds at CT Land Corp. is built on the basis of
Law on Enterprises No. 59/2020/QH14 and Decree No.163/2018/ND-CP about
Issuance of Corporate Bonds and regulations as well as requirements of the Ha Noi
Stock Exchange, can be summarized in the chart below:
 12

Figure 2. 1 Corporate bond issuance flowchart at CT Land Corporation

Step People in charge Flowchart

- Issuer
+ FD prepares Issuer prepare bonds issuance
1 documents
+ BOD approves
- SC consults
- Issuer;
2 + FD prepares Issuer disclose information before
the issuance
+ BOD approves
- Issuer;
- SC consult Issuer issuing bonds
3

- Issuer;
Issuer disclose information on
4 bond issuance results and report
results

- FD;
5 Issuer conduct bond depository

- Issuer;
- FD; Issuer make bond principal and
6 interest payments
- Bank;

- Issuer;
- FD; Issuer disclose information and
7 report periodically until the
- AD; maturity date

Source: Bond Issuance Procedure at CT Land Corporation, 2022

Before the bond issuance, Issuer conducts an asset valuation, usually the land use
rights and off the plan property, to determine the need for capital raising and the
maximum level that can be raised. In order to begin issuing bonds, the Issuer have
 13

to register its business information on the HNX. Then, the Issuer shall sign a
contract with a securities company as a consultant to consult on the issuance plan
and carry out the bond issuance procedure. The bond issuance plan includes key
informations such as: Issuing purpose, Issuer information, name of the bond, bond
code, issue quantity, par value, bond type, bond term, interest rate and interest
payment period. In addition, the issuer shall sign another contract with a Bank to
manage the bond account.
After completing the bond issuance documents, the issuer shall disclose information
before the issuance to the investors register to buy bonds and send the information
to the HNX at least 03 working days before the expected issuing date. After selling
the bonds to the market, the Issuer and Investors who buy bonds will sign a bond
sale and purchase contracts, Investors then make deposits and make payment to the
issuer. The Issuer once again disclose information about the bond issuance results to
bondholders and report the results to the HNX within 05 working days from the end
of the bond issuance. After the information is published on the information page of
HNX about corporate bonds, the securities company – securities depository center
will issue the bond ownership certificates to the bondholders.
On the date of periodic payment, the Issuer makes principal and interest payments
to the bondholders, after which continue to disclose information and periodically
report on the use of capital raised since the day the bonds are completed issued until
the maturity date so that HNX can monitor and control the bond situation.
The bond issuance procedure for the Léman Cap Residence project will be given as
a practical example. Before issuing bonds, Casablanca JSC signed a contract with
Vietnam Assessment and Evaluation Assets JSC - Ho Chi Minh branch (VAAE) to
appraise the LCR project, with a valuation result of VND 598.909.000.000. Based
on this value, Casablanca JSC determined the amount of capital to raise is VND 240
million and raise through issuing corporate bonds. Casablanca JSC signed a Bond
issuance advisory and underwriting agency Contract and Registration, depository,
payment and management of bond transfer Agency Contract with Bao Viet
Securities Joint Stock Company – Ho Chi Minh City branch, at the same time
signed Contract of bond account and bond repayment provision account
 14

management service with Nam A Commercial Joint Stock Bank - Business Center
to carry out bond issuance procedures. The purpose of the bond issuance is to
increase the capital, make investments in the Company's projects, specifically
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
Name Casablanca Bond
Code LDTCH2122001
Type of bond Corporate, non-convertible and secured bonds
Volume Maximum 2.400 bonds
Value Maximum VND 240.000.000.000
Face value VND 100.000.000 / Bond
Time to maturity 18 months
Currency Viet Nam Dong (VND)
Price 100% of par value
Issued date 22/11/2021
Due date 22/05/2023
Coupon rate Fix interest rate 11.5%/ year
Interest payment period Semiannual
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
No.  Name Volume Value (VND) Proportion (%)
1 Institutional Investor 2.100  210.000.000.000  87,50 %
Logistic F LLC 2.100  210.000.000.000  87,50 %
2 Individual Investor 300  30.000.000.000  12,50 %
Nguyễn Hà A 200  20.000.000.000  8,33 %
 15

Trần Thanh B 90  9.000.000.000  3,75%

Nguyễn Thị Thu C 10  1.000.000.000  0,42%
  Total 2.400  240.000.000.000  100%
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 Disbursement date Disbursement
bonds value
1 Invest to develop Léman Cap January 2022: Pay to X 30.000.000.000
Residence project. Joint Stock Company.
2 Invest to develop Léman Cap February 2022: Pay to X 210.000.000.000
Residence project. Joint Stock Company.
Total 240.000.000.000
Source: Report on capital using - Casablanca JSC
2.2 Payment of bond principal and interest process
Thus, the payment of bond principal and interest is in step 6 of the bond issuance
procedure at CT Land Corp., after the bond has been issued to the market. However,
this process lasts from the time the Issuer just plans to issue bonds until the maturity
date. Therefore, the bond principal and interest payment process will be analyzed
through 3 stages: Before issuing bonds, when the bonds have just been issued and at
bonds interest payment period.
2.2.1 Before issuing bonds
Corporate bonds are issued by enterprises on the principle of self-borrowing, self-
repayment and self-responsibility for debt repayment ability. In addition, real estate
bonds usually have a high risk, so the purpose of the bond issuance as well as the
secured property and the ability to repay the debt is always the top concern of bond
investors to ensure the principal and interest payment. Therefore, in addition to
complying with the regulations and requirementa prescribed by the Law, the Issuer
shall prove its creditworthiness through ability to repay the debt. To do this,
 16

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 secured by the 2322 m2 land use rights
and asset to be formed in the future in Ward 2, Vung Tau city, which is valued at
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 first is Company’s cash at the time of bond principal and interest payments and
sencond is the cash flow from operating activities such as selling apartments and
shophouses of LCR project. Based on projected revenue data from ASD,
construction cost data from the Project Development Department, under the
guidance of my manager and colleagues in Feasibility Study team, I had
opportunity to forecast the cash flow for the period 2021-2023 as table 2. belows:
Table 2. 4 Projected cash flow plan for bond principal and interest payment
Unit: million VND
2021 2022 2023
Component Q4 Q1 Q2 Q3 Q4 Q1
Cash collection from
97.500 129.130 129.130 129.130 129.130 33.640
sales
Gross profit from
- - - - - -
operation
Construction cost (697) (36.757) (35.132) (35.132) (35.132) (35.132)
Administrative
(1.898) (2.530) (2.530) (2.530) (2.530) (633)
exxpense
Selling expense (63.261) - - - - -
Interest expense - (13.800) - (13.800) - (13.800)
Other finance expense - - - - - -
Corporate Income Tax - (7.981) (21.968) (11.227) (13.987) -
 17

Cashflow from
31.645 68.061 69.500 66.441 77.481 (15.924)
operation
Contigency cost (3.510) (3.510) (4.680) - - -
Legal consulting cost (3.185) (3.185) - - - -
Payable land use fee (30.392) - - - - -
Cashflow from
(37.087) (6.695) (4.680) - - -
investing activities
Draw down &
240.000 - - - - (240.000)
Repayment
Equity contribution 4.980 -
Dividend
Cashflow from
244.980 - - - - (240.000)
financing activities
Total cashflow
239.538 61.366 64.820 66.441 77.481 (255.924)
movement
Accumulated
239.538 300.904 365.723 432.164 509.645 253.721
Cashflow
Source: Casablanca JSC
2.2.2 When the bonds have just been issued.
Issuer agrees to pay interest on the Deposit to the Buyer from the date the Buyer
pays the Deposit until but not including the Signing Date of the Bond Purchase
Agreement at the interest rate of 8.0%/ year. Interest on the Deposit will be paid to
the Buyer within 03 (three) working days from the Signing Date of the Bond
Purchase Agreement. Interest is calculated according to the following formula:
[Deposits] * [Interest Period] * [Interest rate] 
Interest  = 
365 
In which, Interest period is calculated by the number of days from the date the
Buyer pays the Deposit or the next working day of the date the Buyer pays the
Deposit (in case the Buyer pays the Deposit after 4:00 p.m of Deposit payment
date) to but not including the Signing Date of the Bond Purchase Agreement; and
Interest rate is 8.0%/ year.
 18

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.
Except for the case where the Bonds are redeemed before maturity, the principal of
the Bonds is paid on the maturity date. Interest of each interest period will be paid
periodically every 6 months from the issuance date and paid through a payment
agent which is BVSC – Ho Chi Minh City branch until the Issuer fullfills its
payment payment obligations related to the Bonds. If the Interest Payment Date is
not a working day, the Interest Payment Date is the working day right after the
weekend/ or holiday. The interest payment date of the last interest period is the
maturity date. Thus, 18-month bonds issued on 22/11/2021 will pay interest 03
(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
Income Tax. For Investor being an individual, the Issuer retains 5% of the profit
received from the Investor to pay personal income tax on behalf of the Investor in
accordance with the Law and will change in accordance with applicable laws at the
time of payment.
[Number of bonds] * [Par value] * [Interest rate] *
Interest befor
= [No. of holding days]
e tax
365
In which, the number of holding days is counted from the beginning of interest
period to the date of interest payment.
Issuer has obligation to pay in full and on time the principal of the Bonds at the
maturity date (22/05/2023) to the Bondholders on the actual holding amount at the
maturity date, which is equivalent to VND 240 billion in total.
 19

2.2.3 At interest payment period.

At each interest payment period, the interest payment process for bondholders
carried out by Finance Department takes place as follows:
Finance Department represents Casablanca JSC to send an official letter to BVSC to
request BVSC to send a notice of interest payment so that the company can arrange
money to ensure timely interest payment to bondholders. After receiving the official
letter from Casablanca JSC, BVSC sent back the list of bondholders with the
informations including: Type of investors, Name, ID number, Address, Bank
account number and number of bonds purchased; and an official letter on Payment
of interest to bondholders 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% *
94 / 365).
Similarly, an individual investor, Ms Nguyen Ha A, buys 200 bonds and the interest
is calculated starting from 02/12/2022. As of the first interest payment period, the
bondholder has held the bond for 171 days. Total profit before tax investor Nguyen
Ha X received is 1.077.534.247 (200 * 100.000.000 * 11.5% * 171 / 365), however
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).
This interest calculation sheet will then be attached to the request for payment to
submit to the Board of Directors. After having the final amount, FD submits the
payment proposal for submission to the BOD (Annex 3). After being approved by
 20

the BOD, the Accounting Department make payment to BVSC in order to pay the
bondholders.
 21

Table 2. 5 Interest paid to bondholders on the first interest payment period

Unit: VND
Interest Volume Profit before PIT Profit
No. Name
begin date of bonds tax (5%) (witheld PIT)
6,219,452,05
Institutional Investor 2,100 - 6,219,452,055
5
6,219,452,05
1 Logistic F LLC 2/17/2022 2,100 - 6,219,452,055
5
1,577,232,87 78,861,64
Individual Investor 300 1,498,371,233
7 4
12/13/202 22,684,93
2 Trần Thanh B 90 453,698,630 431,013,698
1 2
1,077,534,24 53,876,71
3 Nguyễn Hà A 12/2/2021 200 1,023,657,535
7 2
Nguyễn Thị 12/27/202
4 10 46,000,000 2,300,000 43,700,000
Thu C 1

78,861,64
Total
2,400 7,796,684,932 4 7,717,823,288

Source: Casablanca JSC – CT Land

After completing the payment of interest to the Bondholders, BVSC sends the
Issuer an official letter notifying the bond payment.
2.3 Overall assessment of issuing corporate bonds procedure at CT Land
Corporation
2.3.1 Strengths
Regarding the implementation of the Interest payment and bond issuance process:
The bond issuance process at CT Land is fully and strictly carried out because every
step in the process complies with the Law issued by the State and with requirements
of HNX. In addition, the process is consulted and underwritten by a reputable and
experienced Securities Company. By signing an agency contract with BVSC, CT
Land has the opportunity to access BVSC's customer network, helping the process
 22

to go efficiently and quickly in finding investors to buy bonds. In term of time, the
process is always done quickly thanks to CT Land' s application of the "24-hour
principle" and digitization approval work, so all submissions are reviewed and
approved by BOD within 1 day from the day submitted.
Regarding interest payment process: The thorough appraisal the value of the Project
by reputable appraisal organization before issuing bonds helps control the risk,
guaranteed debt repayment source for investors, therefore, increase the
creditworthiness of the company as well as the confidence of Investor when decide
to buying the bonds. In addition, all steps of calculating interest are doublecheck by
the Issuer and the Securities Company and notified in writing to ensure the accuracy
Regarding the personnel in charge of the process: This process is carried out under
management of Back Office of Finance Department, and each Project is assigned to
each employee in charge. All tasks related to each step will be submitted to
Manager and then CFO and BOD for review, evaluation and correction if there are
mistakes.
2.3.2 Limitations
Regarding the risk control of the process: Most of secured properties when issuing
corporate bonds at CT Land is real estate. Each real estate project often takes a long
time to complete and earn profit, therefore revenue based on the construction
progress is uncertain, which in the other words means CT Land has low liquidity
ratio. In addition, for secured properties that are projects and assets to be formed in
the future, when the real estate market has many fluctuations, the value of secured
property may be reduced and the Company will not be able to pay off the bond
principal and interest.
Regarding the cost for bonds issuance: CT Land Corp is not a public company so it
can only issue bonds by private placement. Unlike corporate bonds offered to the
public, which are issued with certificates of registration by the State Securities
Commission to unlimited investors, corporate bonds issued by private placement
are not licensed by regulatory authorities and the number of investors is limited,
usually individual investors. Therefore, CT Land have to pay a much higher interest
 23

rate for Bondholders and have to pay additional significant fees for services such as
appraisal, advisory, underwriting, account management for the agency.
 24

CHAPTER 3: THE OUTLOOK, RECOMMENDATIONS

FOR IMPROVEMENT IN CORPORATE BONDS
PRINCIPAL AND INTEREST PAYMENT PROCESS AT CT
LAND CORPORATION
3.1 Outlook of CT Land Corporation
3.1.1 Opportunities
Firstly, the bonds market potential is huge due to the complete legal framework.
Through the development process, the regulations on bond issuance in general have
undergone many changes towards completion in order to help bond issuance
become an important capital raising channel of enterprises. Since Decree No. 163
took effect until the end of 2019, there have been 848 corporate bond issuances with
the actual issuance volume of VND 259,377 billion. This is a very encouraging
figure, showing that the development of the bond market has great potential and is
an effective solution for the financial needs of businesses.
Besides, the demand for bonds or the attractiveness of corporate bonds to investors,
including individual investors, is growing. This is because the return that the
investor earns from bonds is higher than that of a savings deposit. Compared to
deposit interest rates at commercial banks, corporate bond yields will be 0.8%-
1.7%/year higher in 2020 and this gap will widen in 2021 and 2022, especially
when commercial banks simultaneously decrease interest rates.
Lastly, CT Land has 30 years of experience in the real estate development. In
addition, CT Land is planning to IPO in 2022-2023, which not only helps CT Land
access long-term capital raising channels but also helps to promote the brand
awareness and increase the market value of the Company. This is an advantage and
opportunity for CT Land when Vietnam is accelerating up credit ratings for both
privately issued and publicly issued bonds to enhance the publicity and
transparency of the corporate bond market.
 25

Figure 3. 1 Corporate bonds issuance in the first 6 months of 2022

Unit: VND billion

Series 1

35000 30578

30000 25923
24105
25000

20000 16472

15000

10000
3621
5000 1800

0
January February March April May June

Source: VNBussiness
3.1.2 Challenges
The first biggest challenge confronting the company is the Vietnamese bond
market. At present, real estate bonds are facing many problems with a series of
cases showing signs of law violations related to capital mobilization from bond
issuance. This is considered an ominous turning point for the corporate bond
fundraising channel. It not only puts pressure on many banks but also affects real
estate businesses and investors participating in the real estate bond market.
To solve the above problems, the Ministry of Finance is planning to tighten up on
the corporate bonds issuance by amending regulations on conditions for issuing
corporate bonds, measures and sanctions to increase deterrence and the power of the
State Securities Commission in managing cash flow and supervising capital
mobilization activities in the market. The revised Decree 153 which is about to be
issued by the Ministry of Finance, requires businesses when issuing bonds to
register and put these bonds to trade through the official "market”. This will pose a
challenge for CT Land as the Company is not yet a public company and can only
issue private placement corporate bonds.
 26

The last but not least important challenge that enterprises in general and CT Land in
particular are facing when issuing bonds, that is, self-improvement in governance,
finance, and information transparency to meet the requirements of the market.
3.2 Recommendations for improvement of Corporate Bonds Principal and
Interest Payment Process at CT Land Corporation
First of all, CT Land shall have responsibility to coordinate with other responsible
parties in promoting corporate bond transactions on the secondary market. In an
active secondary market, bonds issued can be sold wholesale and retail to
organizations and individuals more widely, helping increase the liquidity of bonds,
thereby increasing the attractiveness of the market, creating favorable conditions for
enterprises to carry out primary issuances to mobilize capital for production and
business development.
Regarding the risk management, CT Land must strengthen and at the same time,
strictly complied with financial governance through risk control measures,
requirements and regulations for both financing and investing activities. Besides,
the Company have to monitor its liquidity and apply an appropriate risk assessment
mechanism to track actual cash flows of ongoing projects and detect risks related to
cash flow in order to increse the creditworthiness and reinforce investors’
confidence when deciding to buy bonds.
Besides, to optimize the cost of capital, CT Land should build and strengthen
relationships with domestic and foreign financial institutions such as: banks,
investment funds… to access all possible sources of capital through suitable
channels, including but not limited to credit, shares and/or bonds, derivatives…
The department that is in charge of prepare the capital raising plan must regularly,
fully and promptly update their expertise towards any newly-promulgated circulars,
regulations and laws related to bond issuance as well as keep a close watch on the
situation of bond issuance in the market to make effective investment decisions,
then prepare for the next issuance and promptly update and supplement the
documents if required.
Regarding human resources, CT Land needs to stabilize personnel structure of
Finance Force in general and Finance Department in particular; provide ongoing
 27

advanced training for all levels of Finance Force staff; and prepare an effective HR
plan for the 5-year outlook. To do this, the Company should promote cooperation
with top universities in Ho Chi Minh City such as: Foreign Trade University,
University of Economics Ho Chi Minh City, Banking University of Ho Chi Minh
City to access young and talented human resources.
 28

CONCLUSION
Corporate bonds are a popular capital mobilization channel in developed countries
and are considered highly effective for businesses. In Vietnam, with the current
capital and financial market, issuing bonds is also the optimal choice, especially for
real estate businesses which need large amounts of money to invest and develop
housing projects, commercial centers, office buildings, and infrastructure,.... It can
be said that capital from bonds is still the main "life source" of many real estate
businesses, including CT Land at the present time.
Although there are still many shortcomings in mobilizing capital through corporate
bonds issuance, in both the external market and the company’s internal process, CT
Land will make the most of its advantages in optimizing the bond issuance process,
ensuring the principal and interest payments to Bondholders. To achieve that goal,
CT Land is required to have coordinated measures: with the Company's efforts as
the main one, along with the support of the Government, the Ministry of Finance,
the State Securities Commission, Ha Noi and Ho Chi Minh Stock Exchange... as
well as other agencies.
In general, this mid-course internship report has briefly presented the corporate
bond issuance procedure and more specifically, the bond principal and interest
payment process at CT Land Corporation based on the knowledge that I have
learned at the university as well as 5 weeks of practical experience at the Back
Office - Finance Department. Although the short internship period may create
barriers for me in fully understanding the entire process, I highly appreciate this
treasured time with sincerest thanks to the considerate guidance of the staff here and
the helpful instruction of my professor.
Eventually, though my suggestions may not be fully worked-out as my expertise is
limited but I still hope that my efforts and recommendations, in one way or another,
make some contributions to the overall improvement in CT Land’s bond issuance
activities. I sincerely have faith in the company's permanent and sustainable
development in the future, I hope the company will always attain as many glorious
achievements as possible in the upcoming journey that awaits them.
 29

REFERENCES
1. CT Land. 2021. CT Land Profile
2. CT Land. 2021. CT Land Business Plan
3. CT Land, 2022. Quy trình phát hành trái phiếu
4. CT Land, 2021. CT Land Quarterly Consolidated Financial Statements
5. CT Land, 2020. CT Land Consolidated Financial Statements
6. CT Land, 2019. CT Land Consolidated Financial Statements
7. CT Land, 2018. CT land Consolidated Financial Statements
8. The Government, 2018, Decree No. 163/2018/ND-CP about Issuance of
Corporate Bonds
9. The Government, 2020, Decree no. 153/2020/ND-CP prescribing private
placement and trading of privately placed corporate bonds in domestic
market and offering of corporate bonds in international market.
10. Nguyễn Thị Minh, 2020, Pháp luật về chào bán riêng lẻ trái phiếu doanh
nghiệp: Bất cập và kiến nghị hoàn thiện, Ấn phẩm Tạp chí Nghiên cứu Lập
pháp, Số 21 tháng 11/2020
11. Law Firm, 2021. Phát hành trái phiếu của doanh nghiệp theo hình thức
riêng lẻ tại thị trường. Available at: < https://tpllawfirm.vn/vi/quy-trinh-
phat-hanh-trai-phieu-cua-doanh-nghiep-theo-hinh-thuc-rieng-le-tai-thi-
truong-trong-nuoc/> [Accessed 27th July 2022].
12. Tạp chí Ngân hàng, 2022. Rủi ro về phát hành trái phiếu bất động sản và
một số khuyến nghị. Available at: < https://tapchinganhang.gov.vn/rui-ro-ve-
phat-hanh-dau-tu-trai-phieu-bat-dong-san-va-mot-so-khuyen-nghi.htm>
[Accessed 27th July 2022].
13. Kinh tế và Dự báo, 2021. Phát triển thị trường trái phiếu doanh nghiệp ở
Việt Nam. Available at: https://kinhtevadubao.vn/giai-phap-phat-trien-thi-
truong-trai-phieu-doanh-nghiep-o-viet-nam-20645.html [Accessed 4th
August 2022].
14. Vnbussiness, 2022. Phát hành trái phiếu doanh nghiệp tăng trở lại, xuất
hiện hành vi bất thường. Available at: https://vnbusiness.vn/tien-te/phat-
 30

hanh-trai-phieu-doanh-nghiep-tang-tro-lai-xuat-hien-mot-so-hanh-vi-bat-
thuong-1086810.html [Accessed 4th August 2022].
15. VnEconomy, 2022. Giao dịch trái phiếu doanh nghiệp sẽ được qua “chợ”.
Available at: https://vneconomy.vn/giao-dich-trai-phieu-doanh-nghiep-se-
duoc-qua-cho.htm [Accessed 4th August 2022].
 31

ANNEX
Annex 1
32
 33

Annex 2
 34

Annex 3