Vingroup to guarantee auto subsidiary’s $216 mln bond issuance

By Dat Nguyen   September 18, 2019 | 02:23 pm GMT+7
Vingroup to guarantee auto subsidiary’s $216 mln bond issuance
A VinFast car runs in the VinFast factory site in northern Hai Phong City. Photo by VnExpress/Giang Huy.

Conglomerate Vingroup has agreed to guarantee a bond issuance worth VND5 trillion ($216 million) this year by its auto subsidiary VinFast.

The company said this in a recent filing with the Ho Chi Minh Stock Exchange without providing information about the time of issuance and other details.

The move comes after global credit ratings firms lowered their outlook on Vingroup due to its increasing leverage to fund the car venture.

Standard & Poor’s last week revised Vingroup's outlook from "stable" to "negative" following a similar move by Fitch last year. In July the conglomerate withdrew from Fitch’s rating program.

The country’s largest private company by market capitalization last year secured a 12-year, $950 million credit line from German export credit agency Euler Hermes to buy machinery and equipment.

The value of corporate bonds issued in Vietnam in January-August this year topped VND129 trillion ($5.58 billion), with 90.9 percent of them bought, according to Saigon Securities Inc.

 
 
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