Masan plans to issue $161 mln in high-yield bonds

Vietnamese private conglomerate Masan Group will issue VND4 trillion ($161 million) worth of non-convertible, unwarranted and unsecured bonds to the public.

The issuance, done in two parts of VND2 trillion each with a par value of VND100,000 ($4.03), has been approved by the group’s board of directors.

The five-year bonds will have a floating coupon rate of 4.1% plus the average of the Vietnamese dong’s reference interest rates offered by BIDV, Vietcombank, VietinBank and Military Bank for 12-month term deposits.

The current interest rate for 12-month term deposits from individual customers at BIDV, Vietinbank and Military Bank is 7.4%, while the figure of Vietcombank is 6.4%.

Masan plans to use half of the total issuance proceeds to partially or totally pay for bonds issued on March 30, 2020 that will mature on March 30, 2023. These payments are set to be made in the first quarter of next year.

The other half would be used to partially pay, in the second quarter of next year, for bonds issued on May 12, 2020 that will mature on May 12, 2023.

Masan has not announced its business results for the third quarter of 2022. In the first half the year, the group reported consolidated net revenues of VND36,023 billion ($1.45 billion), down 12.5% from a year earlier.

The decline was attributed to Masan transferring its animal feed business to Dutch company De Heus late last year in a deal the two sides did not disclose the value of, according to its financial report.

Meanwhile, the group's after-tax profit in the first six months grew 122.7% year-on-year to VND3,110 billion ($133.3 million),

Masan’s business ecosystem includes integrated retail, agriculture, mining, consumer goods, banking and finance.