Bonds issuance on the international market not only help firms diversify their capital mobilization channels, but also expand markets and further attract investment.
BIM Land Real Estate, a member of BIM Corporation, has become Vietnam’s first unlisted firm completing the issuance of US$200-million green bonds without guarantee assets on the Singapore Exchange (SGX).
|Singapore Exchange. Photo: Singapore Press Holding|
The firm’s bonds, given a B2 rating by Moody’s and B by Fitch, were issued with a maturity period of five year and an interest rate of 7.375% per year, with Credit Suisse, UBS and Standard Chartered Bank involving in arranging the deal.
General Director Doan Quoc Huy said BIM Land’s successful deal shows Vietnamese firms are capable of raising funds from international bond market, referring to demand for bonds from foreign investors were more than triple the amount on offer.
“I hope our success would open up the door for more Vietnamese enterprises turning to this channel for fund raising,” Huy said.
Among those showing interests for BIM Land’s bond, 58% came from Asia, 41% from Europe, Middle East and Africa, and the rest from US, of which 92% were investment and asset management funds, and 8% were private banks.
BIM Land plans to use proceeds from this issuance for its real estate projects, including those of green and environmentally-friendly.
Before BIM Land, a number of local public firms successfully issued bonds on international markets, including Vingroup (HOSE:VIC) with bonds worth US$200 million for fixed rate of 11.625% per year in 2013; Novaland (HOSE:NVL) issuing convertible bond of US$240 million in 2018; and VPBank (HOSE: VPB) in 2019 with bonds worth US$300 million.
According to experts, bonds issuance on the international market not only help firms diversify their capital mobilization channels, but also to expand markets and further attract investment.