A customer looks at fruits and vegetables in a VinMart supermarket in Hanoi. Photo by Shutterstock/Vietnam Stock Images.
Conglomerate Masan is set to issue redeemable bonds worth VND8 trillion ($344 million) to increase its working capital and pay debts owed by its VinMart retail chain.
The first batch worth VND4 trillion will be a private placement made this quarter.
The three-year bonds will have a coupon rate of 10 percent for the first year and a floating rate of reference rate plus 4 percent subsequently. The reference rate refers to the average of 12-month deposit interest rates paid to individuals by Agribank, Vietcombank, VietinBank, and BIDV, the four big state-owned lenders. This rate is currently 6 percent.
The money will be used as working capital. Masan said it plans to buy back the bonds in the last four months of next year.
The second batch is scheduled in the last quarter of this year or at anytime next year with the remaining VND4 trillion this time sold to the public.
The three-year bonds will have a coupon rate of 9.8-10 percent for the first year and subsequently a floating rate of reference rate plus 3.8-4 percent.
The company said it has the right to buy back 12 months after the issuance, but did not reveal when it plans to.
The company plans to use VND3 trillion ($129 million), or 75 percent of the money raised, to pay debts it acquired along with the acquisition of Vincommerce, the operator of VinMart supermarkets and VinMart+ convenience stores, from Vingroup last year.
The rest will be used to increase the charter capital of its market research and consulting firm The Sherpa, which began operations in June.
The conglomerate posted a post-tax loss of VND162 billion ($6.98 million) in the first six months against a profit of VND2.2 trillion ($94.75 million) in the same period last year.
It targets profits of VND1-3 trillion this year.