Vingroup plans $750 mln bond issuance

By Hung Le   August 5, 2019 | 10:24 pm PT
Vingroup plans $750 mln bond issuance
A woman walks past an outlet of Vingroup's convenience store chain, Vinmart Plus. Photo by Reuters.
Vietnam’s largest private conglomerate Vingroup is seeking shareholders’ approval for issuing $750 million worth of international bonds this year.

The proceeds will be used to finance new investments and supplement working capital, Vingroup said in a statement on Monday.

The bonds will have a face value of $200,000 and be listed on the Singapore Stock Exchange. The coupon rates will be determined at the time of each issuance and have three-, five- or seven-year maturities.

In the same letter to shareholders, Vingroup also proposed the appointment of South Korean Woncheol Park to the board of directors in place of Joseph Raymond Garnon of American private-equity firm Warburg Pincus, who resigned last month.

Park is a director of SK Investment Vina II Pte Ltd, a subsidiary of South Korean conglomerate SK Group and owner of a 6.15 percent stake in Vingroup.

Private real estate investor Vietnam Investment Group JSC is the biggest shareholder in Vingroup with a 31.83 percent stake. Pham Nhat Vuong, founder of Vingroup and Vietnam’s richest man in terms of stock market assets, owns a 26.18 percent stake.

Vingroup’s revenues rose 1.3 percent year-on-year in the first half of this year to VND61.5 trillion ($2.66 billion), and after-tax profit by 89.5 percent to VND3.3 trillion ($142.47 million).

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