Vingroup completed the issuance of USD 525 million in international bonds

, Vingroup completed the issuance of USD 525 million in international bonds

Vingroup has completed the initial step in the plan to mobilize international bonds with a maximum expected value of 1.5 billion USD.

Recently, on May 16, Vingroup (HoSE: VIC) sent a document to the Hanoi Stock Exchange announcing information on international bond issuance.

Accordingly, Vingroup has completed the issuance of 525 bonds with code VICD2227001 with a term of 5 years, with a par value of 1 million USD/bond, corresponding to a total issuance value of 525 million USD. The issuance completion date is May 10, 2022, the maturity date is May 10, 2027. The above bonds are issued to the international market on the basis of the provisions of the Securities Act of 1933 of the United States and will not be offered for sale and traded in Vietnam.

The above bonds will be redeemed by the issuer at the request of the bondholder or at the request of the issuer in the cases specified in the terms and conditions of the bond.

Thus, Vingroup has completed the initial step in the plan to mobilize international bonds with a maximum expected value of 1.5 billion USD. Initially, the group planned to implement in the first quarter but then moved the implementation time in 2022 and divided it into 2 phases.

The proceeds will be used to supplement Vingroup’s operating capital (payment of fees and expenses for the issuance), increase the size of the group’s operating capital through direct investment in VinFast to implement VinFast automobile production complex project.

On the side of VinFast, the car company continues to affirm its position with a total sales of more than 6.7 thousand vehicles in the first quarter, of which VinFast Fadil continues to be the most popular model in March. After only three months opening registration, VinFast has received a total of about 60 thousand orders for VF 8 and VF9 globally. On March 29, 2022, VinFast announced the construction of the first overseas manufacturing plant in Chatham County, North Carolina State, USA.

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In addition, on April 7, VinFast Trading & Investment Pte. Ltd., a subsidiary incorporated in Singapore of Vingroup, announced that it has submitted a draft preliminary listing application form F-1 with the US Securities Commission (“SEC”) regarding the proposed offering for common stock to the public. The size of the issuance and the offering price of the shares are yet to be determined.

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In terms of business, Vingroup’s total consolidated net revenue in the first quarter reached VND18,229 billion, down 21.7% over the same period last year. According to VIC, if adjusted to add up the revenue from the sale of large real estate lots recorded in financial income, the consolidated net revenue reached VND 25,145 billion, up 0.4% compared to the same period last year. Profit before tax in the first quarter of 2022 reached VND 1,928 billion, and profit after tax reached VND 512 billion.

As of March 31, 2022, Vingroup’s total debt reached VND 306,808 billion, of which total debt was VND 139,548 billion (including VND 63,604 billion of bond debt). Besides, in September 2021, Vingroup issued USD 425 million of unsecured swap bonds with a fixed interest rate of 3.25%/year.

Ending the trading session on May 17, VIC’s share price is trading at 78,000 VND/share, up 1.3%.

@ Cafef

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