Nam Long issues VND660 billion of bonds

PIDG is a multi-donor organization grouping members from seven countries and the World Bank Group, while GuarantCo is rated AA– by Fitch Ratings and A1 by Moody’s. GuarantCo provides local currency guarantees for infrastructure financing in sub-Saharan Africa and south and south-east Asia and dollar-dominated guarantees in fragile and conflict-affected states.

The landmark issuance was the first local currency bond issuance guaranteed by GuarantCo in Vietnam, and was privately placed to investors by Standard Chartered Bank (Vietnam) Limited (SCB Vietnam). The transaction was closed on an accelerated execution timeline, leveraging on SCB Vietnam’s prior experience in executing similar local currency guaranteed bond transactions.

The VND660 billion fixed rate bonds are priced at an interest rate of 6.50% per annum and have a 7-year maturity term. It is issued on June 19, 2018 and will mature on June 19, 2025.

“GuarantCo encourages infrastructure development, including affordable housing, in low income countries through the provision of credit guarantees to allow issuers to raise debt finance…. The bond proceeds will be used primarily towards infrastructure associated with affordable housing. The longer term goal is to enable Nam Long to provide more supply of affordable housing in Vietnam and to support the development of the local debt capital markets further,” said Lasitha Perera, CEO of GuarantCo, in a statement.

Nam Long is the latest corporate bond issuer to tap the Vietnam dong bond market with international guarantee structure in diversifying its sources of funds, contributing significant progress in developing the local bond market. With GuarantCo providing its first corporate bond guarantee in Vietnam, and the first for affordable-housing focused bond guarantee by GuarantCo in Asia, Nam Long demonstrates its leading position in the industry with the backing of a strong counterparty in its bond issue.

“The bond was launched at a good time to anchor the market liquidity and the issuance attracted a great set of highly reputable investors at good price level. We are excited to be able to deliver a great outcome for Nam Long’s local currency bond issuance amidst a rising interest rate environment both internationally and domestically,” said Nirukt Sapru, CEO of SCB Vietnam in the statement.