VietNamNet Bridge – Following the sale of Hai Phong Port, Vietnam National Shipping Lines (Vinalines) has decided to sell Nghe Tinh Port and hopes to gain enough money to pay its debts.

Vinalines reportedly sold 3.89 million shares of Nghe Tinh Port at the IPO (initial public offering) in January 2015.

Investors’ strong interest in the Nghe Tinh Port IPO was a surprise to analysts, who noted that most of the IPOs of the ports in 2014 failed, with only a small percentage of shares sold.

Vinalines is now making hectic preparations for the sale of 13.2 million shares of the Da Nang Port, 21.08 percent of its chartered capital on February 2.

If the amount of shares is sold out as expected, Vinalines would get VND160 billion. The IPO of the port took place some months ago, but only 1.6 million shares were sold.

Another port – Nam Can in Ca Mau province – will be put on sale on January 28. The amount of shares to be on sale is 395,200, which is equal to 49.4 percent of the chartered capital, while the starting price is VND10,000 per share.

Unlike the previous port sale campaigns, analysts think the shares will be sold well.

“The port was not attractive to investors in the past because the State would still hold 75 percent of shares,” an analyst explained. “However, as the government has accepted to reduce its ownership ratio to 51 percent, investors would consider their opportunities”.

A source from the Ministry of Transport said that the shares unsalable at the last IPOs, including the shares of Hai Phong, Nha Trang, Quang Ninh and Da Nang ports are now hunted by investors.

The high demand for port shares is believed to help Vinalines earn big money from selling its ports.

Under the Vinalines’ restructuring plan, the holdings company had to pay $321 million, or VND6.69 trillion worth of debts, to commercial banks by the end of May 2012.

The shipping firm had reportedly owed VND348 billion to Vietcombank, VND862 billion to Vietinbank and VND173 billion to Citibank. It had also owed VND1.175 billion worth of bonds issued in 2010. The four bond holders include VIetcombank, BIDV, Agribank and Vietinbank.

The borrowed money was poured into port development projects and ship procurement in 2007-2008. However, the unexpected decline of the shipping market made the investment deals ineffective.

Vinalines reportedly had to pay VND6.275 trillion worth of debts in 2012 alone. However, the shipping firm could pay VND2.05 trillion only.

A local newspaper quoted a document sent by Vietinbank’s CEO to VInalines in late 2014 as reporting that Vinalines still owes VND5 trillion to the bank. With such a huge debt, Vinalines is one of the bank’s top 10 debtors.

Dat Viet