Keppel Land buys VND500 bln of bonds
Singaporean property developer Keppel Land has concluded a purchase of VND500 billion (US$22.4 million) in convertible bonds from Nam Long Investment Company, which builds affordable houses and departments in Vietnam.
The deal was done through its wholly owned subsidiary Ibeworth Pte Ltd .
The interest rate of the bonds is fixed at 7% annually. The price is set at VND23,500 (US$1.05) per share.
Foreign investors, including Mekong Capital, IFC and Goldman Sachs, have already accounted for the 49% cap allowed for foreign investors.
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Nam Long (listed as NLG at HOSE) is waiting for the issuance of a government circular to guide the relatively new regulation that allows foreign companies to own up to 100%. It also needs the approval of its shareholders to convert the bonds.
Last July, Keppel Land, also via the subsidiary, bought 7.1 million new ordinary shares issued by Nam Long, representing nearly 5% of the company. Once the bonds are converted, its stake will increase to about 5%.
