Mobile World obtains US$50 million in first bond issuance, guaranteed by CGIF

By Trung Ngoc - Nov 24, 2017 | 06:55 AM GMT+7

TheLEADERMobile World Investment Corporation (Mobile World), the leading retail group of diversified product categories including mobile phones and consumer electronics, has successfully issued its inaugural fixed rate bonds of VND1,135 billion (US$50.02 million), guaranteed by Credit Guarantee and Investment Facility (“CGIF”), a trust fund of Asian Development Bank.

Mobile World obtains US$50 million in first bond issuance, guaranteed by CGIF
A store of Mobile World.

The US$50.02 million fixed-rate bonds are priced at an interest rate of 6.55 per cent p.a. and have a 5-year maturity term. The bonds are issued on November 17, 2017 and will mature on November 17, 2022.

“We are excited to collaborate with CGIF on our first bond issuance. This transaction demonstrates the positive development of the local bond market, with participation from reputable and well-recognized investors at an attractive fixed interest rate. This enables us to finance our M&A activities,” said Nguyen Duc Tai, Chairman of Mobile World.

Mobile World joins a few non-bank corporate bond issuers in tapping the Vietnamese Dong bond market, contributing significant progress in developing the local bond market as a means of corporate funding.

Collaborating with CGIF for the issuance, Mobile World continues to demonstrate its leading position in the industry with the support of a strong counterparty in its bond issue.

In a market where there is a lack of corporate issuers and long-term bonds, this bond issuance represents significant progress in further deepening the Vietnamese Dong bond market.

The issuance represents the 3rd VND-denominated corporate bond issue guaranteed by CGIF and was placed by Standard Chartered Bank (Vietnam) Limited (“SCB Vietnam”), acting as the Placement Agent. The transaction was closed on an accelerated execution timeline, leveraging on SCB Vietnam’s prior experience in executing such a transaction.

On August 22, a VND2.5 trillion (US$110 million) budget was approved in Mobile World's General Meeting of Shareholder. This budget is mainly spent on M&A of chains of electronics and pharmaceutical stores.

Recently, Mobile World and Tran Anh Digital World JSC have officially confirmed their M&A deal. Accordingly, Mobile World will acquire Tran Anh's shares, equaling to 25 per cent of Tran Anh's charter capital. This deal is expected to help Mobile World dominate the northern electronics market.