Vingroup Plans to Generate $421M through Bond Issuance
Vingroup has announced its plans to issue VND10 trillion ($421.27 million) worth of bonds to the public this year, with the aim of financing its VinFast operations. The bonds will be divided into two categories, with VND6 trillion having a maturity period of three years and the remaining portion having a maturity period of two years. Individual investors will be required to purchase a minimum of VND50 million worth of bonds, while organizations will need to buy a minimum of VND500 million.
The 36-month bonds will carry a coupon rate of 15% per year, while the 24-month bonds will have a coupon rate of 14.5%. The interest rates will be adjusted in the future based on market conditions. The funds raised through the bond issuance will be loaned to VinFast, a subsidiary of Vingroup, to support its car manufacturing operations in the city of Hai Phong in northern Vietnam. It is worth noting that VinFast is planning to list its shares in the United States later this month.
Vingroup has experienced significant growth, with its revenue doubling year-on-year to VND102.53 trillion in the first six months. Additionally, its pre-tax profit has also doubled to VND7.94 trillion, marking the highest level since the company was listed on Vietnam’s stock market.