IFC mulls $50m financing for Vietnam’s Dragon Capital-backed debt fund

IFC/World Bank HQ. Photo: IFC

International Finance Corporation (IFC), a member of the World Bank, is mulling a proposal to extend a $50 million loan to Vietnam Debt Fund Segregated Portfolio C (VDeF C), a segregated portfolio to be established by Vietnam Debt Fund SPC, a subsidiary of Dragon Capital Group Limited. 

According to a disclosure, the proposed amount will be doled out as a senior loan to VDeF C, in which Dragon Capital itself will be the sole equity investor.

VDeF C will be established with $20 million of equity from Dragon Capital. In addition to the senior loan, IFC will mobilize up to $30 million from other investors for the Fund.

“The project will provide VDeF C with the needed long-term funding to support investment in corporate bonds issued by private sector companies in Vietnam……and support the Fund in promoting sustainability bond issuance in Vietnam through capacity building,” the international lender said.

Incorporated in the Cayman Islands, Vietnam Debt Fund SPC is an investment holding segregated portfolio company and a fully-owned subsidiary of Dragon Capital. The company currently holds two portfolios concentrating in investments in corporate bonds issued by Vietnamese mid and large size private companies, including VDeF A and VDeF B, with total of $92 million AUM (31 December 2019).

Operated in Vietnam in 1994, Dragon Capital is Vietnam’s longest established independent asset manager with approximately $3 billion (as of 31 December 2019) assets under management.

The firm manages closed-ended and open-ended funds that invest in listed and pre-IPO companies, clean-tech, fixed income and real estate, among others. It also backs Vietnam Innovative Startup Accelerator (VIISA) in a partnership with FPT Corporation.

In 2016, IFC extended a $50 million financing facility to the Vietnam-focused fund management firm.

IFC has been increasingly laying its focus on the Vietnamese market. In January, it announced plans to extend a $212.5-million financing package to the country’s VPBank to help it expand its lending to small and medium enterprises (SMEs).

The international lender earlier was considering an investment of up to $50 million in Vietnam-based logistics firm ITL Corporation in the form of a senior, secured, corporate loan.

 

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.