Vietnam’s Vingroup to raise $304m via bonds for phone, auto units

Visual from Vingroup's website.

Vingroup, Vietnam’s biggest listed company, is seeking to raise 7 trillion dong ($303.6 million) through issue of domestic bonds this year to fuel its automobile and smartphone units, the company said in a statement.

The issuance would be in three phases, starting on Feb. 18, the company said. Nearly 73% of capital raised will be channelled into Vinfast, the group’s automobile unit, the rest to phones unit Vinsmart.

The bonds would have a maturity of three years, with par value of 100,000 dong each, it said in the statement seen on Monday.

Vingroup, once a real estate and retail conglomerate, has grown to become Vietnam’s largest listed firm with a market capitalisation of over $15.4 billion.

It also deals in healthcare, education, autos and smartphones and plans to enter the artificial intelligence sector.

In 2017, Vingroup earmarked $3.5 billion to create its Vinfast car unit with plans to produce around 250,000 units annually within the next five years, a period when it does not expect the venture to be profitable.

VinFast sold 29,485 cars last year, however, compared with 15,300 sold in 2019, the company said.

Vinsmart last year said it had produced its first 5G smartphones in cooperation with the U.S.’s Qualcomm.

Reuters

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.