Nhat Tin Logistics issues $2.17 million bonds to facilitate expansion
Nhat Tin Logistics issues $2.17 million bonds to facilitate expansion
Nhat Tin Logistics has successfully issued VND50 billion ($2.17 million) corporate bonds under a private placement to step up its expansion plan.
The bonds of Nhat Tin Logistics were quickly taken up due to the bright prospects of the Vietnamese logistics industry
The bonds were secured, non-convertible bonds, with maturity of 18 months and interest rates of 11.5 per cent per annum. The bonds were fully subscribed and purchased by institutional investors on the offering day.
A representative of Nhat Tin Logistics said that the issuance was well-received by the market, as investors are positive in the outlook of Vietnam’s logistics and express delivery sector. Investors are also optimistic about the potential of Nhat Tin Logistics as a trustworthy brand in the express delivery sector.
According to the latest report by Research and Markets, Vietnam's express delivery services market is booming with a valuation of $700.4 million in 2020 and is projected to reach $1.66 billion by 2028, .
Many domestic express delivery companies are operating in Vietnam and they are constantly witnessing huge growth by investing in the adoption of modern technology to meet the expanding demand in the delivery of goods through e-commerce.
High adoption of express delivery services has been observed across major essential sectors, such as food and beverages and healthcare. The demand from Vietnamese customers to receive the items on the same day or in a day's time has increased over the years, according to the report.
The proceeds from the bond issuance will be used to further improve Nhat Tin Logistics' operational efficiency, expand its nationwide network of post offices, invest in talent development and acquisition, vehicles, and the overall service quality. Nhat Tin Logistics aims to fulfil its 2023 vision to be a Top 3 express delivery companies in Vietnam in terms of scale and logistics network coverage.
