vinashin-attracts-new-investors-to-bond

Vinashin attracts new investors to bond

Vinashin prices 50bps tighter than initial guidance and sells 95% of its bonds to offshore investors.

By Rosie Slater

March 25, 2007

VinashinÆs 10-year VND3 trillion bond priced 50bps tighter than initial guidance, building an order book that was three times oversubscribed and selling 95% of the bonds offshore. The benchmark deal is likely to create a precedent for the country, opening doors for local companies and considerably increasing Vietnamese bond liquidity.

At 9%, the bond priced flat to EVNÆs 2016 10-year bond, a remarkable achievement in view of the considerable size of the deal - the transaction is three times the previous largest Vietnamese corporate bond. Investors were clearly undeterred by VinashinÆs high gearing ratio and unaudited accounts. 100% of the investors were first-time buyers of Vinashin, including 83% who had never bought Vietnamese...

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