Vietnam conglomerate Vingroup issues int’l bonds worth $250 mln

Vingroup has completed an issuance of international non-convertible bonds worth $250 million, the Vietnamese private conglomerate said Thursday.

With a face value of $200,000 each, the five-year notes will be listed on the Singapore Exchange (SGX), according to a Vingroup filing with the Ho Chi Minh Stock Exchange (HoSE), on which it is listed as VIC.

These are non-convertible bonds without guarantees on the issuer's direct payment obligations and stock acquisition rights. Buyers have an option of converting the bonds into shares of Vinhomes, the real estate arm of Vingroup listed on the HoSE as VHM. The conversion can be made at VND51,635-53,880 ($2.15-2.24) per VHM share. The bonds carry a coupon rate of 9.5%-10% per year and the yield will be paid quarterly.

Vingroup plans to use part of the proceeds to buy back $500 million worth of its outstanding bonds with an interest rate of 3% per year, due in 2026.

After the move, shares of Vingroup ecosystem hit the floor on Thursday. VIC shares dropped 6.94% to its floor price of VND41,600 ($1.69) per share; VHM shares fell 6.9% to its floor price as well, at VND41,800 per share; and VRE shares of Vincom Retail, the retail arm of Vingroup, fell 6.99% to its floor price at VND24,600 per share.

Vingroup, the biggest private company in Vietnam by market capitalization, reported record revenues of VND47.95 trillion ($1.95 billion) in the third quarter of 2023, a year-on-year increase of 66.5%.

The group’s pre-tax profit topped VND4.47 trillion ($182.1 million), down nearly 15% from the same period last year, according to its financial statement.

In the first nine months of the year, the conglomerate’s total consolidated net revenue hit VND134.2 trillion ($5.46 billion), an increase of 122% year-on-year, mainly thanks to the handover of low-rise houses at Vinhomes Ocean Park 2 and three projects in Hung Yen province neighboring Hanoi, and strong growth in electric vehicle sales.