Vingroup issues Vietnam landmark bond

Hanoi-based real estate firm priced Vietnam’s first ever dollar bond from the corporate space despite investor scepticism towards the credit, sector and the nation’s macro conditions.
Vietnam’s government is under pressure to find ways to reduce the country’s spiraling bad debts.
Vietnam’s government is under pressure to find ways to reduce the country’s spiraling bad debts.

Vingroup Joint Stock Company raised a $200 million 4.5-year senior high-yield note with a callable option in the third year on Thursday, defying investor concerns circling the lack of transparency plaguing Vietnamese real estate corporate profiles as well as weak domestic economic fundamentals.

The 144aReg S notes which are guaranteed by its subsidiaries including Vincom Retail ended up pricing tighter than initial guidance of about 12% despite investor challenges, achieving a yield of 11.875%.

“This is one of the toughest deals that I have ever done in my career,” said a source. “It was tough in the respect that we have to allay investor concerns with...

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