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.