Vietnam's Vingroup raises $134 mln via domestic bonds
Wednesday, February 24, 2016, 08:00 GMT+7
Vingroup, Vietnam's biggest listed property developer, said on Tuesday it has raised 3 trillion dong ($134.1 million) through a domestic bonds issue.
The fixed-rate, unsecured senior bonds are backed by Credit Guarantee and Investment Facility (CGIF), a trust fund of the Asian Development Bank, Vingroup said in a statement on its website.
The 5-year and 10-year bonds, with annual coupon rates of 7.75 percent and 8.5 percent respectively, will help Vingroup raise cheap capital for its long-term investments, the company said.
Par value of the bonds is 1 billion dong ($44,684.75) each.
"This is a landmark transaction for CGIF because it debuts our support for the real-estate sector in rapidly growing ASEAN economies like Vietnam to meet their challenges from the increasing rate of urbanisation and demand for real estate," said Kiyoshi Nishimura, Chief Executive of CGIF.
The issue was led by local Techcom Securities Company Ltd and advised by Societe Generale, the statement said. ($1 = 22,379 dong)
