IFC registered to buy vnd 1,000 billion worth of Nam Long’s bonds

Waterpoint Nam Long garden townhouse

Nam Long will invest the proceeds from the bond issuance in Waterpoint phase 2 - an integrated township development project in Long An province.

A press release from the International Finance Corporation (IFC), a member of the World Bank, said that IFC has registered to buy bonds with a total value of one trillion VND (approx. USD 44 million) issued by Nam Long Investment JSC, the leading real estate developer in Vietnam.

IFC will support Nam Long Investment JSC to develop green and sustainable housing projects in a satellite city of Ho Chi Minh City, helping Vietnam with its urgent housing needs and climate change issues. Nam Long will use the proceeds from the bond issuance for the second phase of the Waterpoint housing project, an integrated township development project in Long An province, including green public spaces, sports facilities, schools, universities, medical facilities, as well as transportation, retail, and office facilities.

The IFC investment is expected to create 1,500 jobs and contribute to establishing a satellite city that provides housing for over 50,000 people.

"IFC’s investment will enhance our ability to provide more housing for the growing middle-income population in Vietnam. In addition, more than 5,000 units of the Waterpoint phase 2, built to IFC's EDGE standards, Excellence in Design for Greater Efficiencies, will help address Vietnam's severe housing shortage in a sustainable way" said Tran Xuan Ngoc, General Director of Nam Long Investment JSC.

As an IFC initiative, EDGE will help the project reduce energy and water consumption by 20% compared to similar housing projects. This reduction in consumption will help to lower greenhouse gas emissions in the construction industry, which accounts for about 28% of the country's total annual greenhouse gas emissions.

"Vietnam has dual goals of becoming a high-income country by 2045 and net-zero carbon emissions by 2050, so investing in such housing projects provides many benefits," said Alfonso Garcia Mora, IFC Vice President of the Asia-Pacific region, who is visiting Vietnam this week. "Environmentally sustainable housing in satellite cities, which connect people with jobs in large economic and commercial centers is an effective solution to limit the impact of climate change while helping to increase the supply of quality housing for Vietnam's growing middle class."

Vietnam's rapid economic growth has led to rapid urbanization with over a third of the total 96.5 million people living and working in urban areas. In the future, Vietnam will face a significant housing shortage, i.e. over 370,000 housing units per year, especially in industrial zones and satellite cities around Hanoi and Ho Chi Minh City, two major economic centers of the country. When domestic production is restored, cash flows, which are very important for Vietnam's economic recovery, will continue to flow to these economic and commercial centers.

In 2021, Nam Long recorded VND 5,205 billion in net revenue, 2 times higher than the same period last year. Profit before tax reached VND 1,640 billion, 61.5% higher than the same period, and profit after tax reached VND 1,478 billion, increased by 74%, of which the parent company's profit after tax was VND 1,071 billion. Earning per share in 2021 was VND 3,011.

In 2021, NLG set a target of VND 13,519 billion in revenue and VND 1,367 billion in profit after tax. By the end of 2021, although the profit target exceeded 8%, the company has only fulfilled 38% of the revenue target.

Source: CafeF