'Vietnam’s Samsung' Vingroup Joint Stock Company (Vingroup JSC) issues 230 billion won in won-denominated bonds

【Hanoi, Vietnam—Special Correspondent Kim Joon-seok】Vingroup, Vietnam’s largest private conglomerate, has successfully issued 230 billion won in won-denominated bonds to diversify its international funding channels and expand its base of Korean investors.
According to local media on the 26th, Vingroup formally announced in a disclosure on the 24th that it had completed the issuance of international bonds denominated in won, totaling 230 billion won. The bonds have a three-year maturity from the date of issuance and a fixed nominal interest rate of 8% per annum. They are secured bonds issued through a private placement in the international market, carry no conversion rights or warrants, and are subject to direct repayment by Vingroup.
Shares in Vinhomes and Vinpearl held by Vingroup or third parties will be designated as collateral at different points in time. The bonds were privately placed with investors in South Korea, and there will be no public offering or listing in Vietnam.
Vingroup’s board had previously approved a plan, on August 11, to issue overseas won-denominated bonds with a three-year maturity, a fixed interest rate of no more than 8% per annum, and a maximum value of 455 billion won. The 230 billion won raised in this issuance amounts to about 50.5% of the maximum limit approved by the board.
The issuance of these won-denominated bonds is seen as a strategic move by Vingroup to diversify its overseas funding channels rather than rely on a particular currency or a single market. Bond issuance in the Korean market is expected to help attract a new investor base, but the ultimate fundraising impact is expected to depend on the issuance terms and the market’s risk appetite.
Local media assessed that “through this three-year issuance, Vingroup has secured stable medium-term funding while also creating an opportunity to once again demonstrate its fundraising capabilities in the foreign bond market for debt denominated in Asian currencies.”
[email protected] Kim Joon-seok Reporter