Vingroup is about to issue 10 trillion VND in bonds to the public to provide loans to VinFast for investment in an automobile manufacturing project in the Dinh Vu - Cat Hai Economic Zone, Hai Phong.
Public offerings have stricter conditions compared to private placements. Vingroup (VIC) stated that the 10 trillion VND fund includes 6 trillion VND with a 36-month term and 4 trillion VND with a 24-month term.
These are non-convertible, unsecured bonds that establish a direct debt obligation with Vingroup. Each bond has a face value of VND 100,000.
Individual investors must register to purchase a minimum of 500 bonds, equivalent to 50 million VND. Institutional investors must purchase a minimum of 5,000 bonds, equivalent to 500 million VND at face value.
The interest rate for the 36-month bond issue (VND 6,000 billion) is 15% per annum for the first two interest periods, after which the rate floats at the reference rate plus 4.5%. For the 24-month bond issue (VND 4,000 billion), the interest rate for the first two periods is 14.5%, and after that, it floats at the reference rate plus 4%.
According to Vingroup, the purpose of this issuance is to provide loans to VinFast – the group's manufacturing subsidiary – to invest in an automobile production project in the Dinh Vu - Cat Hai Economic Zone, Hai Phong.
Founded in 2017, VinFast is a member of Vingroup (VIC) with the vision of becoming a smart electric vehicle brand that will drive the global electric vehicle revolution.
After 6 years of establishment, this company has developed an electric vehicle ecosystem including electric SUV models (from minicars to 5 basic segments ABCDE) and a diverse range of electric motorcycles comprising 7 models and electric buses.
The company has delivered electric vehicles to customers in Vietnam, including the VF e34, VF 8, VF 9, and VF 5 models, and exported the first two batches of VF 8s to North America earlier this year. VinFast electric vehicles are also expected to be available in Europe soon.
The company recently announced that the filings related to its business combination transaction with Black Space (a company funded by Black Spade Capital, which operates a portfolio of cross-border investments) have been made effective by the U.S. Securities and Exchange Commission. VinFast is expected to list on the U.S. market as early as August.
By the end of the second quarter, Vingroup's total assets reached nearly VND 608,000 billion, a slight increase compared to the end of the first quarter. In the last three months, the group has raised and disbursed more than VND 22,400 billion, including syndicated loans totaling USD 430 million from international capital markets and payments of VND 20,000 billion in debts due during the period.
In the first two quarters of this year, the group recorded consolidated net revenue, including revenue from real estate transfers recognized as financial income, reaching VND 102,530 billion, more than double that of the same period last year, mainly thanks to the handover of low-rise properties at the Vinhomes Ocean Park 2 project.
Other sectors, including investment real estate, hotel services, tourism, entertainment, and manufacturing, all experienced growth. In particular, manufacturing revenue in the first six months of the year increased by 55% thanks to a sharp rise in electric vehicle sales, which were five times higher than the same period last year.
Vingroup's consolidated pre-tax profit for the first half of the year reached VND 7,936 billion, more than double that of the same period in 2022 and the highest level since the group was listed on the stock exchange.
Minh Son
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