Vinhomes plans up to $570 mln private bond issue to fund projects

Vinhomes, Vietnam’s largest listed property developer, plans to raise up to VND15 trillion ($570 million) through a private placement of corporate bonds, as the company steps up funding for its expanding portfolio of large-scale residential developments.

In a board resolution released Wednesday on the Hanoi Stock Exchange, Vinhomes (HoSE: VHM), a subsidiary of Vingroup (HoSE: VIC) said it intends to issue non-convertible, secured bonds without warrants, carrying a combination of fixed and floating interest rates.

The bonds will have a face value of VND100 million ($3,799) each and a maximum tenor of 24 months from the issuance date of each tranche.

The company said proceeds from the issuance will be used to finance its investment projects. The bonds will be secured by assets legally owned by Vinhomes and/or third parties.

The planned fundraising comes just days after Vinhomes completed the issuance of four bond tranches worth a combined VND6 trillion ($227.96 million) on June 20, according to HNX.

The tranches, coded VHM12607, VHM12608, VHM12609 and VHM12610, carry maturities of between 36 and 38 months and an annual coupon rate of 12.5%. The proceeds were earmarked for debt restructuring purposes.

Including the latest issuance, Vinhomes has raised a total of VND21 trillion ($797.86 million) through the domestic bond market so far this year. If the company fully executes the newly approved VND15 trillion offering, its total bond issuance in 2026 would reach VND36 trillion ($1.37 billion).

The fundraising drive comes as Vinhomes pursues an ambitious expansion strategy centered on several mega urban developments across Vietnam.

Recently, chairman Pham Thieu Hoa said the developer would stop acquiring additional land in Vietnam, arguing that its existing land bank was sufficient to support development activities for the next five to seven years. The company reported a land bank of approximately 29,500 hectares at the end of 2025, the largest among Vietnamese developers.

Vinhomes has set a target of VND285 trillion ($10.83 billion) in revenue and VND60 trillion ($2.28 billion) in net profit for 2026, up 38% year-on-year. If achieved, the figures would mark record highs for the company.

The developer reported strong first-quarter results, with consolidated revenue surging to VND65.1 trillion ($2.47 billion) and net profit reaching VND25.63 trillion ($973.58 million), up fourfold and tenfold, respectively, from a year earlier, driven by project handovers and continued sales momentum.

VHM shares ended down 1.94% to VND156,500 ($5.95) each on Thursday.