VN Dealbook: Gazprom in JV with PetroVietnam; PNJ plans to issue $22m bonds

Visual from Phu Nhuan Jewelry JSC website.

In a major business development, Russia’s energy conglomerate Gazprom has said it will acquire 49 per cent of Vietnam’s first oil refinery Dung Quat, and will also invest in manufacturing gas engines in the Southeast Asian country, through a $1 billion joint venture between the Gazprom International unit and PetroVietnam. Meanwhile, ornament trader Phu Nhuan Jewelry is planning to issue more than $22 million bonds instead of selling shares to its stakeholders.

Gazprom, PetroVietnam form gas engine JV

PVGazprom NGV, a $1-billion joint venture between Russia’s Gazprom International and Vietnam’s state energy giant PetroVietnam to produce gas engines, has received the investment certificate from the Ho Chi Minh City investment department.

Kovtun Andrey, director of representative office of Gazprom International, revealed that the JV is in the process of building manufacturing plan, which may expand to other provinces in the south of Vietnam, the Tuoi Tre (Youth) reported.

The representative office of the JV, which will commence operation next month, will be in Ho Chi Minh City.

The report stated that cooperation projects in the energy sector between Russia and Vietnam were well on track, and Russia’s largest natural gas group eyed broader expansion in processing and distributing liquefied gas in the Southeast Asian country.

Previously during a meeting with the Dong Nai’s People’s Committee, Gazprom International reportedly said to build a 250,000 tonne capacity liquid gas plant in the southern province.

Meanwhile, Ho Chi Minh City is targeting using 100 per cent gas-powered buses for public transportation by 2020.

Also read: Russia’s Gazprom Neft to buy 49% in Vietnamese Refinery

PNJ cancels share sale, opts for bond issuance

Ho Chi Minh City-based Phu Nhuan Jewelry JSC (PNJ) has decided it will not sell 20 million shares to the company’s current shareholders, and will issue up to VND500 billion ($22.2 million) bonds instead, according to a Vietnam News report.

The plan was announced earlier this month to raise the company’s capital by 20 per cent to VND1.2 trillion.

However, PNJ will issue bonds this year, which will be worth a maximum of VND500 billion, valued at VND1 million per bond and will mature within one year.

The money collected from the bond issuance will be spent on restructuring VND350 billion of the company’s short-term loans and developing a retailer network, worth VND150 billion. The bonds will be divided into two types – a secured bond, which are stakes owned by shareholders with benefits such as dividends and rights to purchase shares, and non-secured bonds. The bond coupon will be based on the market interest rate at the issuance date and will be fixed until the maturity date.

Also read: British PE firm LGM ups its stake in Vietnam jeweller PNJ

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.