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Standard Chartered Việt Nam places REE’s $100 million fixed rate bonds

Update: January, 29/2019 - 18:43
Refrigeration Electrical Engineering Corporation successfully issued VNĐ2.3 trillion ($100 million) fixed rate bonds. — Photo
Viet Nam News

HÀ NỘI — Standard Chartered Bank (Việt Nam) Limited on Tuesday successfully placed Refrigeration Electrical Engineering Corporation’s (REE) inaugural VNĐ2.3 trillion ($100 million) fixed rate bonds.

The issue was guaranteed by Credit Guarantee and Investment Facility (CGIF), a trust fund of Asian Development Bank rated AA internationally by S&P. 

The VNĐ2.3 trillion fixed rate bonds are priced at an interest rate of 7 per cent a year for a 10-year maturity term.

REE operates in the fields of real estate development and management; mechanical and electrical engineering services; manufacturing, assembling and sales of Reetech air-conditioner systems, as well as power and water utility infrastructures. It is among the 30 largest listed companies in terms of market capitalisation on the Hồ Chí Minh City Stock Exchange.

Despite market volatility, bidding interest, especially in the longer tranche, remains strong. In view of the favourable pricing, the issuance strategy was adjusted by shifting the 7-year demand into the 10-year tranche.

This is the sixth time that SCB Việt Nam has acted as the bond issuance agent for a guaranteed Vietnamese đồng-denominated corporate bond issue in Việt Nam.

“The successful issue has contributed to deepening and developing Việt Nam’s local capital markets, as it encourages more corporate issuers to consider the country’s bond market as a viable financing option,” said Nirukt Sapru, CEO Việt Nam and ASEAN & South Asia Cluster Markets, Standard Chartered Bank.

“We see it as an important milestone as we continue to widen our funding options and sources in line with our business development and expansion needs,” said Nguyễn Ngọc Thái Bình, REE’s chief financial officer.

By bringing new and credible issuers like REE to the Vietnamese đồng bond market, we hope to encourage more institutional investors to provide long-term funding to firms who require such funding, Kiyoshi Nishimura, chief executive officer of CGIF said. — VNS

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