Vietnam's leading conglomerate Vingroup to issue bonds worth $38 mln for debt restructuring

Vietnam’s conglomerate Vingroup (HoSE:VIC) plans to issue VND1 trillion ($38.2 million) in corporate bonds via private placement to restructure its debt, according to a recent board resolution filed with local stock exchanges.

The upcoming bonds will be non-convertible, unsecured by warrants, and secured by assets owned either by Vingroup or third parties.

The bonds will have a maximum maturity of 36 months, with the exact issuance date to be disclosed in the offering prospectus and subsequent notices, the company said.

Vingroup stated that 100% of the proceeds will be used for debt restructuring purposes.

This move follows a series of recent bond issuances by the conglomerate. On May 28, Vingroup raised VND2 trillion ($76.44 million) by issuing 20,000 bonds under the code VIC12507.

Earlier, on May 15, the company issued another VND2 trillion in bonds under code VIC12506, which will mature in 24 months on May 15, 2027. According to data from the Hanoi Stock Exchange (HNX), the VIC12506 bonds carry an annual coupon rate of 12.5%.

Recently, Pham Nhat Vuong, chairman of Vingroup, transferred part of VIC shares he owns to newly-founded companies VinEnergo and VinSpeed, where he holds controlling stakes.

Vuong transferred more than 70.6 million VIC shares to VinEnergo, an energy firm established in March.

Meanwhile, his transfer of nearly 87.6 million VIC shares to infrastructure developer VinSpeed is scheduled to take place between June 24 and July 23, 2025. The shares represent 2.26% of Vingroup’s charter capital.

On the Ho Chi Minh Stock Exchange, VIC closed up 3.23% to VND95,800 ($3.66) each on Tuesday.