Vietnam's consumer finance major F88 launches first public bond issuance with 10% annual coupon

F88, a leading consumer finance company in Vietnam, has received regulatory approval for its first public bond issuance, offering a fixed annual coupon of 10% - a level seen as attractive amid low bank deposit rates and softer corporate bond yields.

The State Securities Commission has authorized F88 to sell up to 10 million bonds with a face value of VND100,000 ($3.8) each, equivalent to a fundraising size of up to VND1 trillion ($37.9 million).

The issuance will be split into three tranches in 2026: VND300 billion from January 10, 2026; another VND300 billion ($11.37 million) in the first half of 2026; and the remaining VND400 billion from Q2 to Q4/2026. Each tranche will be offered within 90 days. The bonds carry a 24-month tenor with interest paid quarterly.

According to the Vietnam Bond Market Association's Q3 report, the average coupon for corporate bonds was about 7.18% with an average maturity of 4.6 years, making F88’s 10% rate comparatively competitive. The shorter two-year tenor also targets investors seeking stable mid-term returns.

This marks F88’s first public issuance after years of relying on private placements, which are restricted to professional investors. A public offering requires stricter financial disclosures, profit results, and capital-use plans, and allows broader participation from retail and institutional investors.

An F88 representative said the move is part of its long-term strategy to diversify funding sources, enhance transparency, and solidify investor confidence. Proceeds will be used to grow its network, strengthen lending capital, and bolster financial capacity to meet the demand for growth in the coming years.

F88 reported pre-tax profit of VND603 billion ($22.86 million) in the first nine months of the year, nearly completing its full-year target. Outstanding loans rose 40% from the start of the year to VND6.41 trillion (over $243 million), while disbursements increased 80% year-on-year, reflecting continued demand for its financial services.

Since 2019, F88 has issued around VND5.3 trillion (nearly $201 million) in private placement bonds and repaid about VND4.5 trillion at maturity. Even during the nationwide corporate bond turmoil of 2023, the company met all interest payment obligations.

In October, FiinRatings upgraded F88’s credit rating from “BBB-” to “BBB” with a Stable Outlook, citing stronger liquidity and funding access. Stress-test results showed the company could maintain liquidity even if it secured only half of its planned new borrowings in 2026.

Analysts say combining public and private bond channels may help F88 optimize its capital structure, improve liquidity, and secure more stable long-term funding, while giving investors an additional transparent, income-generating investment option in a market with growing appetite for lower-risk assets.