Vingroup JSC has used more than 100 million shares in Ha Noi Southern City Development Joint Stock Company as the collateralised asset for a contract signed with Credit Suisse AG (Singapore).
Ha Noi Southern City Development Joint Stock Company, which is 99% owned by Vingroup, is a Vingroup development unit of the Times City project in Hanoi. Those over 100 million shares accounts for half of the company's charter capital.
Last year, Credit Suisse AG arranged a syndicated loan of US$300 million for Vingroup. The first borrowers included Credit Suisse AG, ICBC, Maybank International (Labuan Branch) and Taipei Fubon (overseas branch).
However, after that, the loan was joined by many other Taiwanese banks such as TA Chong, Mega AC Mega, Hua Nan, Chang Hwa, First Commercial and Entie Commercial.
Credit Suisse AG (Singapore) is a well-known capital arrangement partner of numerous private corporations in Vietnam. Recently, this bank arranged the capital for Novaland, the consumer finance company FE Credit of VPBank.
Credit Suisse AG will also arrange a US$800 million loan for the automobile manufacturing project in Hai Phong of Vingroup.
Vingroup received the loans in July and September 2016. From January 2018 onwards, the group will begin repaying 7.5% of the loan principal, according to a report of the group.
The collateral for this loan is 327.5 million shares of Tan Lien Phat Construction Investment Corporation. This company is the investor of the Vinhomes Central Park complex, which is located in Tan Cang, Ho Chi Minh City.
Apart from the international capital market, Vingroup has borrowed capital domestically, mainly by bonds from banks. In early July, the group issued VND3,600 billion (roughly US$158.6 million) bonds with the first year interest rate at 10.25% and 10.3%. These bonds will mature in 2019 and 2020.
By mid-2017, the total value of loans and debts of Vingroup is about VND44 trillion (about US$1.9 trillion). Of which, the issued bonds accounted for about VND28 trillion (about US$1.2 trillion).