Standard Chartered arranges REE’s bond issuance
Standard Chartered Bank Vietnam on January 29 announced its arrangement for the Refrigeration Electrical Engineering Corporation (REE) to issue 2.31 trillion VND (100 million USD) in fixed rate bonds.
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| Illustrative image (Source: VNA) |
The issuance was guaranteed by Credit Guarantee and Investment Facility (CGIF), a trust fund of the Asian Development Bank that has been rated AA internationally by S&P Global.
REE, established in 1977, operates in the primary fields of mechanical and electrical engineering services (M&E), manufacturing and assembling and sales of Reetech air-conditioner systems, real estate development and management, and power and water utility infrastructures.
As one of the first companies to list its shares on the Ho Chi Minh Stock Exchange, REE is among the 30 largest companies in terms of market capitalisation (as of December 31, 2017, REE’s market value is 12.86 trillion VND).
According to Nirukt Sapru – a representative of Standard Chartered Bank Vietnam, ASEAN, and South Asia Cluster Markets – assisting REE in its first bond issuance helps Standard Chartered Vietnam develop its capital market.
The bank – with its deep understanding of the domestic market, large network, and considerable experience – commits to supporting its customers to concretise sustainable growth opportunities, he said.
Meanwhile, REE CFO Nguyen Ngoc Thai Binh said that the move helps his firm diversify capital mobilising measures to meet the demand of expanding its business.
The 100 million USD bonds are priced at an annual interest rate of 7 percent for the 10-year maturity term.
