Vietnam’s Vingroup raises $1.3b from GIC via stake sale in units, loan

The latest Vincom-branded shopping mall in Hanoi.

Vietnam’s biggest property developer Vingroup has raised $1.3 billion from Singapore’s wealth fund GIC by selling a stake in two units and through a loan.

One of the units involved is IPO-bound Vinhomes, the luxury villa and serviced apartment development arm of Vingroup, the Vietnamese realty giant said in a statement.

The capital raised will be used to fund the units’ projects, Vingroup said in its statement.

Vinhomes registered to list nearly 2.7 billion shares on the Ho Chi Minh City Stock Exchange (HoSE) earlier this month. In a disclosure to HoSE, the realty developer announced it has a charter capital of VND26.79 trillion ($1.17 billion). Vingroup currently owns 69.67 per cent of Vinhomes’ charter capital.

Vingoup in February said that it is planning a spinoff of its luxury residential arm that could raise as much as $1 billion. That target has now been doubled, with Vingroup seeking to raise as much as $2 billion via a share sale. If successful, it would mark the biggest ever first-time share sale in Vietnam, according to Bloomberg data.

The IPO of Vinhomes would follow last year’s listing of Warburg Pincus-backed Vincom Retail JSC, Vietnam’s biggest shopping mall operator and also a unit of Vingroup, which raised roughly $708 million. GIC had also participated in Vincom’s IPO.

Singapore-based sovereign wealth fund GIC is one of the largest financial investors in Vietnam’s capital market with investments in big companies such as Masan Group, Vietjet Air, Vinamilk, FPT, PAN Group and Vinasun.

The participation of Singapore sovereign wealth fund GIC and Franklin Templeton in Vincom Retail’s IPO has attracted other global investors to the country, bankers and lawyers said.

According to the consolidated financial statement for the fourth quarter of 2017, Vingroup’s total consolidated revenue reached VND90.3 trillion ($3.9 billion) in 2017, up 56.8 per cent compared to 2016. The group’s pre-tax profit stood at VND8.9 trillion ($390 million), up 53.9 per cent from a year ago.

Also Read: 

Luxury property developer Vinhomes to trade nearly 2.7b shares on HoSE

Vingroup picks banks for property unit IPO that could raise $1b

Vietnam’s realty major Vingroup forays into pharma sector

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.