Vinhomes raises $314 mln from domestic bonds at 12% yield

Vinhomes, the largest residential housing developer in Vietnam, has issued a total of VND8 trillion ($314.3 million) worth of Vietnamese dong-denominated bonds so far this year, all at a coupon rate of 12% per annum.

Of the figure, two tranches worth a combined VND4 trillion ($157.14 million) were issued in March with a three-year maturity, and another two tranches of the same amount combined in April were offered with two-year terms, according to filings submitted to the Hanoi Stock Exchange, which runs the bond market.

The issuances were part of the developer’s plan to raise VND10 trillion ($392.85 million) from domestic bonds this year. The notes are inconvertible and unsecured.

Vinhomes, a subsidiary of private conglomerate Vingroup, raised a total of VND9 trillion ($353.56 million) from five bond issuances in 2023, according to exchange data.

The firm’s financial statements showed that it had VND19.39 trillion ($761.74 million) worth of outstanding bonds as of end-March, with 57% being secured with land use rights and land-attached properties.

Vinhomes earned a consolidated net profit of VND884.7 billion ($34.76 million) on revenue of VND8.2 trillion in Q1/2024, down 25.7% and 72% year-on-year, respectively.

Seeing more positive signals from the local real estate market, it aims to book a net profit of VND35 trillion ($1.38 billion) on revenue of VND120 trillion this year, up 4.4% and 15.87% year-on-year, respectively.

The firms portfolio includes mega urban projects like Vinhomes Ocean Park I, II, III, Vinhomes Grand Park, and Vinhomes Smart City in Hanoi, and it is developing the 877-hectare Vinhomes Royal Island on Vu Yen island in the neighboring city of Hai Phong, and several others in the southern region.