Vietnam agri firm BaF postpones bond issuance to IFC over new rules

By Tuong Thuy
Thu, October 20, 2022 | 12:13 pm GMT+7

Vietnamese pork producer and feed mill operator BaF has put off its VND600 billion ($24.46 million) convertible bond issuance to the World Bank’s investment arm IFC due to new regulations on corporate bond issuance via private placements.

Decree 65, issued by the government on September 16, amends and supplements Decree 153 on private placements of corporate bonds. It requires transparency for bond issuance purposes, therefore enterprises must specifically state their bond issuance purposes in their published issuance plans. The amendments also aim to help enhance issuing enterprises’ responsibilities and duties regarding the proper use of proceeds from issuing bonds.

Under the new context, BaF said its board of directors was aware that its bond issuance plan for the IFC, approved this August, was no longer in line with the new rules. Therefore, they have decided to adjust the plan and will re-apply with the regulators later.

 A BaF pork retail point in Vietnam. Photo courtesy of the company.

A BaF pork retail point in Vietnam. Photo courtesy of the company.

This May, IFC disclosed it had proposed a $39 million investment in BaF by buying convertible bonds for this VND600 billion and senior bonds for VND300 billion ($12.23 million). IFC said the goal was is to support BaF in growing its genetic breeding stock and breeding farms.

Under the IFC proposal, the sites for the new investments include two feed mills, one in the planning stage while the other is under construction; one slaughterhouse and meat processing facility in the planning stage; and expansion of pig farm production capacity with 13 sow farms and 18 hog farms, planned in the 2022-2023 period.

BaF currently operates two feed mills with a combined production capacity of 254,000 tons per year, with a third mill set for completion this year at an annual capacity of 200,000 tons. Its farming division owns a total of 13 pig farms, three commercial sow units, and eight finishing farms across 13 provinces in Vietnam.

According to the Vietnam Bond Market Association (VBMA), in the first nine months of the year, there were 20 corporate bond issuances to the public with a value of VND10,499 billion ($438.7 million), accounting for 4% of the total issuing value, and 389 issuances under private placements worth VND233,692 billion ($9.76 billion), accounting for 96%.

The total issuing value under public offerings decreased approximately by 9% compared to last year's same period, while the total issuing value under private placements decreased nearly by 45%.

Comments (0)
  • Read More
Vietnam dairy producer LOF appoints new CEO

Vietnam dairy producer LOF appoints new CEO

The Ho Chi Minh City-headquartered LOF International Dairy Products JSC has appointed Doan Huu Nguyen as its new CEO, effective from August 5, in the context of its after-tax profit plunging 86.16% year-on-year in H1.

Companies - Mon, August 11, 2025 | 5:30 pm GMT+7

Vietnam, S Korea seek strengthened investment ties in semiconductors, renewables, smart city building

Vietnam, S Korea seek strengthened investment ties in semiconductors, renewables, smart city building

Vietnam and South Korea seek to scale up their investment collaboration in infrastructure development, high-tech electronic manufacturing, semiconductors, AI, renewable energy, smart city building, and construction of specialized industrial parks, their top leaders stated on Monday.

Economy - Mon, August 11, 2025 | 4:56 pm GMT+7

Central Vietnam province Quang Tri’s $2 bln energy project in Laos inspected

Central Vietnam province Quang Tri’s $2 bln energy project in Laos inspected

The $2 billion AMI Savannakhet wind power plant in Laos’ Savannakhet province are among five projects of the central province of Quang Tri named by the Government Inspectorate in its latest large-scale inspection.

Energy - Mon, August 11, 2025 | 3:57 pm GMT+7

Vietnam's benchmark VN-Index surpasses 1,600 points

Vietnam's benchmark VN-Index surpasses 1,600 points

An unprecedentedly high inflow of cash into Vietnam's stock market drove the VN-Index, which represents the Ho Chi Minh Stock Exchange (HoSE), to reach the 1,600-point threshold on Monday morning.

Finance - Mon, August 11, 2025 | 1:27 pm GMT+7

Vietravel Airlines soars under T&T Group helm

Vietravel Airlines soars under T&T Group helm

Since joining conglomerate T&T Group, Vietravel Airlines, a member of travel service provider Vietravel Group, has undergone a rapid transformation, from leasing aircraft to owning three planes in just two months.

Companies - Mon, August 11, 2025 | 10:49 am GMT+7

T&T Group, Saigon Co.op partner to expand retail models in Vietnam's urban areas

T&T Group, Saigon Co.op partner to expand retail models in Vietnam's urban areas

Vietnam’s conglomerate T&T Group and Ho Chi Minh City-based retail major Saigon Co.op on Saturday signed a strategic cooperation agreement to jointly develop diverse retail models within T&T Group’s nationwide urban real estate projects.

Companies - Mon, August 11, 2025 | 10:17 am GMT+7

Investment wave returns, land prices in central Vietnam hub Danang hit new highs

Investment wave returns, land prices in central Vietnam hub Danang hit new highs

Danang city’s real estate market is seeing a strong comeback from investors in both the north and south of Vietnam, with several areas setting new price benchmarks.

Real Estate - Mon, August 11, 2025 | 8:30 am GMT+7

Consortium proposes $2.48 bln metro line linking HCMC to Long Thanh airport

Consortium proposes $2.48 bln metro line linking HCMC to Long Thanh airport

A consortium led by multi-sector firm DonaCoop and VinaCapital has proposed a VND65 trillion ($2.48 billion) metro line connecting Ho Chi Minh City with Long Thanh International Airport in the neighboring province of Dong Nai.

Infrastructure - Mon, August 11, 2025 | 8:00 am GMT+7

Real estate developer Phat Dat’s “geographical edge” from HCMC expansion: From strategic core to new growth driver

Real estate developer Phat Dat’s “geographical edge” from HCMC expansion: From strategic core to new growth driver

The merger of Binh Duong and Ba Ria-Vung Tau into Ho Chi Minh City is ushering in a new chapter for the southern real estate market, and Phat Dat Real Estate Development Corporation is seen as one of the top beneficiaries poised to capitalize on this timely opportunity.

Real Estate - Sun, August 10, 2025 | 2:02 pm GMT+7

Vietnam’s garment, wooden furniture exports to US likely to slow: official

Vietnam’s garment, wooden furniture exports to US likely to slow: official

From now until late 2025, and possibly into the first half of 2026, some Vietnamese exports to the U.S may struggle to sustain the rapid growth seen in the first six months of this year, said Vu Ba Phu, director of the Trade Promotion Agency under the Ministry of Industry and Trade.

Economy - Sun, August 10, 2025 | 1:27 pm GMT+7

Vietnam port operators dock strong quarter

Vietnam port operators dock strong quarter

Many port operators in Vietnam logged strong Q2/2025 net profit, and analysts said that the sector has potential to sail further.

Companies - Sun, August 10, 2025 | 10:21 am GMT+7

Vietnam's Party chief To Lam leaves for state visit to South Korea

Vietnam's Party chief To Lam leaves for state visit to South Korea

Vietnam's Party General Secretary To Lam and his spouse Ngo Phuong Ly departed from Hanoi on Sunday morning for a four-day state visit to South Korea, at the invitation of President Lee Jae Myung.

Politics - Sun, August 10, 2025 | 9:15 am GMT+7

Japan’s Sumitomo eyes LNG power plant in central Vietnam

Japan’s Sumitomo eyes LNG power plant in central Vietnam

Sumitomo Corporation is exploring the development of an LNG-to-power plant in Vietnam’s central coastal province of Khanh Hoa, part of its push into the country’s new energy sector.

Energy - Sun, August 10, 2025 | 8:00 am GMT+7

Brazilian meatpacker JBS to build 2 plants in Vietnam

Brazilian meatpacker JBS to build 2 plants in Vietnam

Brazilian meat giant JBS S.A. will invest in two export-oriented food processing plants in Vietnam following a plan first announced in March.

Investing - Sun, August 10, 2025 | 12:28 am GMT+7

Vietnam's benchmark VN-Index likely to reach 1,800 points next year: broker

Vietnam's benchmark VN-Index likely to reach 1,800 points next year: broker

Despite potential short-term volatility from increased profit-taking pressure following a high-margin phase in late July, Vietnam’s benchmark VN-Index is expected to reach the 1,750-1,800 point range in 2026, according to leading broker Saigon Securities (SSI).

Finance - Sat, August 9, 2025 | 6:22 pm GMT+7

Mobile World to list mobile phone, electronic home appliance chains by 2030

Mobile World to list mobile phone, electronic home appliance chains by 2030

Mobile World Investment Corporation (MWG), a leading retailer in Vietnam, plans to conduct an IPO of and list its core retail chains The Gioi Di Dong (mobile phones) and Dien May Xanh (electric and electronic home appliances) by 2030.

Companies - Sat, August 9, 2025 | 6:04 pm GMT+7