Mobile World raises US$50 million in first bond issuance
Top Vietnamese mobile phone retailer Mobile World Group (MWG) completed its first corporate bond issuance, worth a total of VND1.135 trillion, or about US$50 million, on November 21.
The notes, due in 2022, will bear interest at a fixed rate of 6.55% yearly. They are guaranteed by the Credit Guarantee and Investment Facility (CGIF), a trust fund founded by ASEAN 3, grouping ten ASEAN nations, China, Japan and the Republic of Korea.
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| A store of the Mobile World Group (Photo: baotintuc.vn) |
“We are excited to collaborate with CGIF on our first bond issue. This transaction demonstrates the positive development of the local bond market, with participation from reputable and well-recognised investors at an attractive fixed interest rate. This enables us to finance our merger and acquisition activities,” said MWG Chairman Nguyen Duc Tai.
It represents the third Vietnam Dong-denominated corporate bond issuance guaranteed by the CGIF and was placed by Standard Chartered Bank, acting as the placement agent.
MWG has three major brands – The Gioi Di Dong, Dien May Xanh and Bach Hoa Xanh – with more than 1,520 retail stores nationwide. Last year, it earned about US$2 billion in net revenue, a year-on-year surge of 76.7%.
