The International Finance Corporation (IFC), a member of the World Bank Group, has proposed an investment of $44 million in Vietnam’s real estate developer Nam Long Investment Corporation (NLG), according to a disclosure.
The proposed investment, which is a corporate bond of up to VND 1 trillion (approximately $44 million equivalent), will help support Nam Long’s project Waterpoint Phase II. The 190-hectare project will be located in Long An, around 30km southwest of Ho Chi Minh City with a total cost estimated at $ 411 million.
Founded in 1992 by Nguyen Xuan Quang, NLG has constructed over 18,000 housing units in Ho Chi Minh City and surrounding provinces.
The company mainly targets low- to middle-income households in Vietnam, with 84% of the company’s total sales units in 2019 contributed by affordable and premium affordable apartment products.
NLG is listed on the HCMC Stock Exchange since 2013 and has a market capitalization of approximately $971 million.
NLG has a diversified shareholder base. As of January 2021, Nguyen and his relatives -who are the largest shareholders in the company – collectively own 17.7% stake in NLG. Other shareholders, including a Singapore-based real estate developer and public investors, own the rest of the company’s shares.
IFC said that the project is to improve quality of life by giving the low-mid urban income population access to quality and affordable housing, schools, hospitals and commercial areas.
“The project will also create jobs and positive environmental impacts. Beyond the project, IFC anticipates that success of the proposed investment will encourage other developers to serve the low-mid urban income population in other secondary cities in Vietnam,” IFC said in the disclosure.
Nam Long plans to increase its housing market share – in addition to the affordable housing segment with its popular brands like EHome, Flora and Valora, it plans to develop new product lines in new segments in Ho Chi Minh City.
The company also plans to expand to other localities such as Ha Noi and certain smaller cities with great economic potential and which attract a large number of workers who would have large housing demand will be destinations for its land and housing development segments.
Last year, IFC said it is providing a financing package of $75 million to Vietnam-based real estate firm Phu My Hung Development Corporation to help sustain its operations in the wake of the COVID-19 pandemic.
Earlier, Vietnamese property developer BIM Land had also raised $87.5-million long-term financing from the international lender.