|Royal City in Nguyen Trai Ha Noi is one of the most typical real estate projects that Vingroup develops in the city. — VNS Photo
HA NOI (VNS) — Real estate developer Vingroup (VIC) announced that it has sold VND3 trillion (US$133.9 million) of corporate bonds under the guarantee of Credit Guarantee and Investment Facility (CGIF), a trust fund of the Asian Development Bank.
The fixed-rate senior unsecured bonds in five-year and ten-year bonds were sold at the coupon rate of 7.75 per cent and 8.5 per cent respectively.
According to the group, it was the first time that CGIF has guaranteed bond issuance by a real estate developer from the ASEAN's member and is also its largest transaction in Viet Nam to date.
With a market capitalisation of $3.7 billion as of 31 January 2016, VIC is the largest listed developer and manager of real estate, hospitality and entertainment properties in Viet Nam. It is also working in consumer retail, healthcare, education and agricultural products.
Kiyoshi Nishimura, Chief Executive Officer of CGIF said, "It is a landmark transaction for CGIF because it debuts our support for the real estate sector in rapidly growing ASEAN economies like Viet Nam to meet their challenges from the increasing rate of urbanisation and demand for real estate." He added that the local currency bond market could be a vital source of funding that appropriately matches the needs of integrated real estate developers like Vingroup.
Techcom Securities (TCBS) was the lead adviser of the deal.— VNS