Vingroup issues bonds worth $200 million

Vingroup issues bonds worth $200 million

Vingroup Joint Stock Company debuted on the international debt capital market issuing US$200m worth of 4.5 year bond notes.

Supply outstripped demand for the bonds with more than 100 investors snapping up the coupons, which offered an 11.625 per cent return.

The net proceeds of the bond issue will be transferred to Vincom Retail, a retail subsidiary of Vingroup, and private equity investor Warburg Pincus.

Vincom Retail owns and operates a portfolio of high-end shopping malls in prime locations and key cities in Viet Nam. It will use the net proceeds to fund development projects and for working capital and general corporate purposes.

Fund managers absorbed the lion's share of the notes, 66 per cent, while 25 per cent went to private banks and 9 per cent to other banks and investors.

Many of the buyers were new to the Vietnamese corporate credit market, with 25 per cent hailing from the United States, 15 per cent from Europe and the remaining 60 per from Asia.

The notes, which mature in 2018, received a B+ ranking from Fitch rating agency while S&P issued the new venture a B rating. 

vietnamnews