Vietnam’s biggest property developer Vinhomes to raise $40M by selling bonds to Asian Infrastructure Investment Bank

The funds will support infrastructure for housing projects, notably the Happy Home social housing initiative in the northern port city of Hai Phong, according to the State Bank of Vietnam, which is consulting government bodies on the international issuance.

Vinhomes Ocean Park in Gia Lam District, Hanoi in July 2023. Photo by VnExpress/Ngoc Thanh

The China-based multilateral lender plans to buy $40 million worth of the bonds to be issued on the Singapore Stock Exchange.

The bank said the proposal aligns with Vietnam’s priority to tackle its housing shortage, especially for low-income families, as it targets construction of one million social housing units by 2030.

The deal awaits regulatory approval from Vietnamese authorities.

The Happy Home project in Hai An District spans over 28 hectares and is estimated to cost more than VND5.8 trillion ($228 million).

It will have 27 buildings with over 4,000 apartments ranging from 25-70 square meters. Construction began early last year and is slated for completion within five years.

Beyond Hai Phong, subsidiaries of Vingroup, ­Vinhomes’ parent company, are also developing social housing in provinces such as Thanh Hoa, Quang Tri and Khanh Hoa.

At a recent meeting with Prime Minister Pham Minh Chinh, Vingroup executives pledged to build 500,000 social housing units or half the national goal by 2030.