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.
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