Vietnam Digest: Vietcombank to issue bonds; Genco 3 to pare stake in unit

Vietcombank. Photo: Company's social media page

Vietcombank, Vietnam’s largest commercial bank by market capitalization, plans to issue bonds worth 6 trillion dong ($256 million ) this year while a subsidiary of Vietnam Electricity Corporation Genco 3 will offload its 30.6 per cent stake in Vinh Son Song Hinh Hydroelectric Joint Stock Company.

Vietcombank to offer $256m of bonds this year

Vietnam’s largest commercial bank by market capitalization, Vietcombank, plans to issue bonds worth 6 trillion dong ($256 million) this year to fund operations and consolidate long-term capital, according to an announcement. 

Under the plan, the bank will issue 60 million five-year bonds at 100,000 dong ($4.35) per unit with a coupon rate of 5.4 per cent. They will be non-convertible, unsecured and without warrants, it said.

The issuance is aimed at bolstering the firm’s operating capital and its VND-denominated loans in medium- and long- term projects.

The Hanoi-headquartered lender last year reported a pre-tax profit of 23.15 trillion dong ($988 million), an increase of 26 per cent year-on-year.

In December, Vietnam’s FMCG giant Masan Group announced plans to issue bonds worth up to 10 trillion dong ($431.5 million) this year. The bond proceeds will be used to expand its business, lend to units and repay a loan.

Genco 3 to sell 30.6% stake in Vinh Son Song Hinh Hydroelectric

Power Generation Corporation 3 (Genco 3), a subsidiary of Vietnam Electricity Corporation (EVN), has announced that it will offload its 30.6 per cent stake in Vinh Son Song Hinh Hydroelectric Joint Stock Company (VSH) to investors in April.

The company will offer 63 million shares for sale at a starting price of 31,931 dong ($1.37) apiece. The auction, which is expected to take place on April 20, will be open to foreign investors, according to a filing with the Ho Chi Minh City Stock Exchange.

Genco 3 is expected to earn over 2 trillion dong ($86 million) from the divestment. It is currently the second-largest shareholder in VSH after Refrigeration Electrical Engineering JSC with more than 102 million shares equivalent to a 49.5 per cent stake. 

In 2018, the government had raised 184.8 billion dong ($8.13 million) from the initial public offering (IPO) of Genco 3. The proceeds were a measly 3 per cent of the government’s target of raising at least 6.5 trillion dong ($286 million) from the stake sale.

In a reflection of low investor interest, only 7.45 million shares were sold of the 267 million shares on offer in the auction.

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.