Vietnam’s Masan Consumer Holdings to raise $417m via bonds

Visual from Masan Group's website

Masan Consumer Holdings (MCH), a wholly-owned subsidiary of one of Vietnam’s leading private firms Masan Group, and a syndicate of eight banks led by Vietcombank, have inked agreements to sell 9 trillion dong ($413.32 million) worth of bonds.

“This is the largest ever private corporate bond deal in Vietnam’s capital market,” the parent company, Masan Group, said in a statement, adding that the proceeds from the deal will be used to simplify its consolidated balance sheet, including the repayment of existing debts, and to reduce its overall cost of funds as market conditions become more favorable.

MCH will sell its five-year bonds to leading banks including Vietcombank, the country’s biggest listed lender by market value, and also Bank for Investment and Development of Vietnam (BIDV) and Vietnam International Bank, among others.

Vietcombank has been the go-to partner for the company during its transformation over the past decade, from a small food processing company into one of Vietnam’s largest consumer products companies, and it had delivered a wide range of corporate banking products and services, said the lender’s deputy chief executive Nguyen Thi Kim Oanh. “This record-breaking deal has marked a noteworthy milestone in our long-term partnership. We are proud that we can meet the increasingly sophisticated needs of our corporate clients as they develop,” she added

Vietcombank has been chosen as the priority banking partner for Masan Consumer due to its excellent corporate banking services, said Michael Hung Nguyen, deputy chief executive of Masan Group. “As a leading bank in Vietnam, Vietcombank’s support is also a validation for Masan Group’s consumer-related businesses,” he added.

With the issuance of the $416.7 million bonds, the group will be able to lower its cost of capital and simplify its balance sheet, he said.

This is its second bond sale in under a year. It had raised VND2.1 trillion from a sale of 10-year bonds in December last year.

Vietcombank Securities is handling the bond issue. Vietcombank will buy bonds worth VND5.4 trillion, BIDV will take VND900 billion of bonds and Military Commercial Bank, about VND300 billion.

Masan Group had recently established Masan Nutri-Science – this was setup by acquiring Sam Kim Co Ltd, which owned a 52 per cent stake in Vietnam French Cattle Feed JSC (Proconco) and 70 per cent in Agro Nutrition Company. Masan Nutri-Science aims to close the productivity gap in the animal protein space between Vietnam and the developed world, starting with the animal feed sector.

Masan Group is on track to deliver $2 billion in revenue in 2015. It was the only Vietnamese firm that Forbes ranked among the top 20 most innovative growth companies in the world in 2015.

MCH directly owns a controlling interest in Masan Consumer, one of Vietnam’s largest diversified fast moving consumer goods (FMCG) companies.

In addition to Masan Consumer, Masan Consumer Holdings wholly owns Masan Brewery, which was established after the acquisition of Phu Yen Beer and Beverage JSC last year.

Also read: Masan Group acquires Vietnam’s major animal protein platform

Masan Group restructures consumer biz

Vietnam’s Masan buys stake in two competitors

Singapore fund reduces holdings in Vietnam’s Masan Group

Vietnam’s Masan Resources to list on the stock exchange

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. 
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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.