<article>In the first healthcare bond issue in the local market, Vietnamese private hospital Hoan My Medical has issued its inaugural fixed rate bonds worth VND2.33 trillion ($100 million).</article>

In the first healthcare bond issue in the local market, Vietnamese private hospital Hoan My Medical has issued its inaugural fixed rate bonds worth VND2.33 trillion ($100 million).
The issuance, placed by Standard Chartered Bank Vietnam, was guaranteed by Credit Guarantee and Investment Facility (CGIF), a trust fund of Asian Development Bank.
CGIF’s CEO Kiyoshi Nishimura asserted that the Vietnamese dong-denominated bond market was ready and could play an important role in funding private healthcare businesses.
CGIF’s inaugural guaranteed bond in Vietnam was in 2014, and the fund has since guaranteed 23 transactions.
“This issuance enables us to tap the capital markets for fixed-rate long-term funding, which better suits the nature of our business. This will allow us to grow and invest in our healthcare services across Vietnam,” said Huynh Le Duc, CEO of Hoan My.
The bonds were oversubscribed by about 2.5 times and are priced at an interest rate of 6.64 per cent per annum for the 5-year maturity term, and 6.74 per cent for the 7-year maturity term.
This is the fifth time Standard Chartered Vietnam acted as the bond issuance agent for a guaranteed VND-denominated corporate bond issue.
“We are honoured to be able to play a part in the growth of the local capital market which offers an alternative avenue of funding for both listed and private companies in Vietnam,” said Nirukt Sapru, Standard Chartered Bank regional CEO for Vietnam &#8211; ASEAN and South Asia Cluster Markets.
Hoan My is among the first and largest private hospitals in Vietnam with 14 hospitals and six clinics serving more than three million patients annually.
In 2009, a consortium of investors including VinaCapital and Deustche Bank’s  DWS Vietnam Fund injected $20 million for a 44 per cent stake in Hoan My. Two years later, the consortium sold the investment to India healthcare group Fortis over business conflicts with the company. In total, Fortis paid $64 million for a 65 per cent equity interest in Hoan My.
In 2013, Fortis sold its entire holding to Richard Chandler Corporation, pocketing $16 million in profits.

In the first healthcare bond issue in the local market, Vietnamese private hospital Hoan My Medical has issued its inaugural fixed rate bonds worth VND2.33 trillion ($100 million).

Vietnam: Hoan My Medical issues $100m worth VND-denominated bond

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Vietnam: Hoan My Medical issues $100m worth VND-denominated bond

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