Vinhomes gets green light from SGX for bond issuance
Vinhomes JSC has just announced its submission of registration documents for bond listing on the Singapore Stock Exchange (SGX) on December 19.
The company has also received preliminary approval from the exchange to list its bonds.
This strategic move marks a significant step for Vinhomes in raising capital from foreign investors through bond issuance.
Previously, in late October, Vinhomes' Board of Directors approved a plan to issue international bonds worth a total of US$500 million. These non-convertible, non-warrant bonds are unsecured and have a five-year maturity.
In recent years, several Vietnamese companies have planned to issue bonds on the international market to raise capital. However, only a few large companies have been able to achieve this feat.
Foreign investors typically rely on credit ratings. To issue bonds on the international market, companies must have a strong reputation, audited financial reports in line with international standards and robust financial health.
Successfully raising capital from international bonds will affirm Vinhomes' attractiveness to foreign investors.
The company's leadership views this as an opportune moment to issue international bonds due to significantly lower interest rates compared to those in the domestic market.
In addition to international fundraising, Vinhomes has also attracted substantial capital from the domestic market.
Since the beginning of 2024, Vinhomes has raised funds through nine separate corporate bond tranches, totalling VND20.5 trillion (US$805.6 million). All of these bonds carry an interest rate of 12% per annum. The substantial capital raised will support Vinhomes in executing several large-scale projects.
In 2025, Vinhomes plans to launch several projects including Vinhomes Wonder Park (Hanoi), Vinhomes Apollo City (Quang Ninh Province) phase 1 and two new urban area projects in Long An province. Vinhomes Wonder Park is expected to be launched in the first quarter of the year.
With Dan Phuong district set to be upgraded to a city in 2025, VNDirect anticipates positive market responses to this project, attracting both homebuyers and investors, similar to the success of Vinhomes Global Gate in Dong Anh district.
