Vingroup successfully issues US$325 million bonds in Austrian market
Vingroup, one of Vietnam's leading conglomerates, has successfully issued bonds worth US$325 million in the international market with a maturity period of five years.
The announcement was made through a report submitted to the Hanoi Stock Exchange (HNX).
On May 16, Vingroup issued 1,652 bonds coded VICD2328002, each with a face value of US$200,000. The bonds are set to mature on December 16, 2030, and are listed on the Vienna Stock Exchange in Austria.
These bonds, issued in US dollars, are non-convertible, and come without warrants or guarantees, providing a direct obligation for the issuer to repay.
Notably, the bonds include an option for investors to convert them into existing shares of Vinpearl, which is under the ownership of Vingroup.
Recently, Vingroup has submitted a proposal to the State Bank of Vietnam (SBV) regarding provisions under Article 6, Clause 2 of Circular 08/2023/TT-NHNN, which specifies conditions for foreign loans that are not guaranteed by the government.
Vingroup is seeking to extend the maturity of deposits that arise from withdrawn loan amounts that have not yet been utilised, allowing the company to manage its liquidity more flexibly according to its production and business plans.
According to the SBV, Clause 2 of Article 6 of Circular 08 states that if a loan has been withdrawn but not yet used for the legal purposes outlined in the Circular, the borrower may deposit these funds with credit institutions or branches of foreign banks in Vietnam. The maximum term for such deposits is capped at one month.
This recent regulation offers greater flexibility for firms in utilising foreign loans while maximising the benefits of idle funds.
The one-month deposit term aligns with the temporary idle nature of borrowed funds, ensuring readiness for legal loan purposes.
While the short deposit term is designed to accommodate the temporary surplus of loan capital, borrowers are still required to comply with stipulations for tracking idle funds as outlined in the Circular.
Vingroup applies for international bond sale
Vingroup (HOSE: VIC) is preparing to hit the international markets with a US dollar-denominated bond offering, the State Securities Commission has recently announced, signalling a move to strengthen its financial position and broaden access to global investors.
