Jardine Cycle & Carriage Limited, a Singapore-based entity and a key regional investment holding entity of Jardine Matheson Group, has participated in a private placement by subscribing to convertible bonds valued at $350 million, according to a source familiar with the matter. The bonds have a face value of VND1 billion (approximately $42,200) each, with an interest rate of 6% per annum and a maturity date of November 14, 2028, giving them a term of five years.
Jardine Cycle & Carriage Limited acquired a 20.5% stake in THACO in 2008, which has now increased to 26.6%. In addition to its partnership with THACO, Jardine Cycle & Carriage Limited collaborates with other prominent brands such as Vinamilk and REE. This recent issuance of bonds positions THACO as the second-largest corporate bond issuer in Vietnam this year, following Capitaland Tower. Capitaland Tower issued bonds worth VND12.25 trillion (approximately $516 million).
THACO has three bond issuances still in circulation, totaling VND6.4 trillion (approximately $270 million), all with five-year terms and interest rates ranging from 8% to 9.8% per annum. In the first half of the year, THACO paid nearly VND296 billion (approximately $12.5 million) in bond interest. However, THACO reported a 78% decrease in post-tax profit compared to the same period last year, resulting in a return on equity of 2.12%.
As of the end of June, THACO’s equity stood at over VND50 trillion (approximately $2.1 billion), representing an increase of nearly VND1.5 trillion (approximately $63.3 million) in six months. THACO’s total assets reached nearly VND165 trillion (approximately $7 billion), surpassing VinFast, Masan Group, and PV Gas, and closely trailing behind Hoa Phat Group.
THACO Group is currently in negotiations with foreign investors for the divestment of a 10% stake in its automotive arm, THACO Auto, in preparation for an anticipated initial public offering on the stock market. Ho Chi Minh City Securities Corporation, THACO’s financial advisor, is working on this plan. Last October, THACO Group signed a strategic collaboration agreement with China’s Shandong Heavy Industry Group Co., Ltd. in Hong Kong, highlighting Vietnam’s strategic role as a market in Southeast Asia for the next 5-10 years.
As Vietnam’s largest automotive company, THACO is involved in various sectors, including manufacturing, assembly, distribution, retail, and aftersales services for commercial and passenger vehicles. The company represents international brands such as BMW, Kia, Mazda, MINI, Peugeot, FOTON, and FUSO. Additionally, THACO is engaged in residential and commercial property development, agricultural activities in Vietnam, Laos, and Cambodia, and provides logistics services such as warehousing, freight forwarding, and seaport services.