Wednesday,  Jun 26, 2019,02:49 (GMT+7) 0 0
Standard Chartered arranges bond issuance for Hoan My
By Le Hoang
Tuesday,  Oct 9, 2018,17:52 (GMT+7)

Standard Chartered arranges bond issuance for Hoan My

By Le Hoang

A doctor at Hoan My Hospital does a medical checkup for a patient - PHOTO: COURTESY OF HOAN MY

HCMC - Standard Chartered Bank (Vietnam) Limited (SCB Vietnam) on October 8 announced it has arranged for Hoan My Medical Corporation to issue VND2.33 trillion dual-tranche fixed rate bonds.

The issuance was guaranteed by Credit Guarantee and Investment Facility (CGIF), a trust fund of the Asian Development Bank, rated AA internationally by S&P. 

Hoan My is the leading and largest private hospital network in Vietnam based on the number of hospitals and operating beds. With 14 hospitals and six clinics, Hoan My serves more than three million patients annually, providing high-quality healthcare to the people.

SCB Vietnam’s expertise in local currency bond origination in Vietnam has enabled Hoan My to achieve its objectives of a dual-tranche issuance, locking in a fixed-rate long-term funding at competitive yields.

This is the fifth time that SCB Vietnam has acted as the Bond Issuance Agent for a guaranteed VND-denominated corporate bond issue.

“We are pleased to arrange the first healthcare bond for the healthcare industry in Vietnam for Hoan My. We have achieved this bond issuance with the support of CGIF, a trusted partner in Vietnam,” Nirukt Sapru, CEO Vietnam and ASEAN & South Asia Cluster Markets, Standard Chartered Bank, said in a statement. 

The VND2.33 trillion dual-tranche fixed rate bonds were oversubscribed by some 2.5 times and are priced at an interest rate of 6.64% per year for the five-year maturity term, and 6.74% for the seven-year maturity term.

Huynh Le Duc, group chief executive officer of Hoan My, said that this issuance will enable the hospital to tap the capital markets for fixed-rate long-term funding, which better suits the nature of its business.

“This will allow us to grow and invest in our healthcare services across Vietnam and further our mission of helping more people to live healthier and more prosperous lives,” Duc added in the statement.

CGIF has championed the importance of strengthening the VND capital markets and their vital role in helping the country build a more resilient financial market. The rapid development of the VND corporate bond market since CGIF’s inaugural guaranteed bond in 2014 has been extremely encouraging, experts remarked.

This transaction marks CGIF’s 23rd guarantee issued to date. So far, CGIF has successfully issued guarantees to bonds in five of the six available local currencies in the ASEAN bond markets – the Indonesian rupiah, the Philippines peso, Singapore dollars, Thai baht and Vietnamese dong.

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