Vingroup seeks to raise $750 million via international bond issuance

Vingroup has made a proposal to its shareholders on August 1 seeking for approval on its plan to issue up to $750 million in international bonds. This comes as part of an attempt for the conglomerate to raise additional funding for its own investment projects as well as its subsidiaries’, and at the same time enhance its working capital.

The bonds are non-convertible and unguaranteed, with a par value of $200,000 apiece. The coupons could be floated, fixed or a mixed between these two and the bonds would mature in three, five or seven years, depending on the decision of the board of directors and market conditions at the time of the issuance.

The time for the issuance is scheduled for the remaining months of 2019, with the exact date subject of regulatory approval. Vingroup’s bonds are to be listed on the Singapore Stock Exchange accordingly.

Vingroup has also proposed the election of Park Woncheol, director of SK Investment Vina II Pte. Ltd. to be a new board member for the tenure of 2016-2021, to replace Joseph Raymond Gagnon, who represented Warburg Pincus and has resigned on July 8.

Singapore-based SK Investment Vina II is a subsidiary of Korean-backed SK Group and currently holds almost 206 million shares, equivalent to 6.15 per cent of Vingroup.

For the second quarter of 2019, Vingroup reported a total revenue of VND39.5 trillion ($1.71 billion) and post-tax profit of VND2.3 trillion ($100 million), an up of 22.4 per cent and 218.1 per cent on-year, respectively.