Ho Chi Minh City, April 23, 2024 – Masan Group Corporation (HOSE: MSN, “Masan” or the “Company”) today successfully completes a US$250-million equity raise from Bain Capital (“Bain”), a world-leading private investment firm with approximately US$180 billion of assets under management. Converted at VND25,356 per USD, the almost historically high USD/VND exchange rate, the investment resulted in a positive net cash impact of VND6,228 billion[1], which will significantly strengthen the balance sheet of the Company. The Company will continue to actively explore alternative options to deleverage and reduce interest expenses with a target net debt to EBITDA ratio of <3.5x.
As the leading consumer-focused corporation in Vietnam, Masan has been one of the most trusted names among international financial institutions, which enabled the Company to raise US$1.5 billion in the past two years from global capital markets. In Q4, 2023, the Company successfully hedged 100% long-term USD-debt exposure with favorable terms via Cross Currency Swaps: US$950 million notional has been converted to VND at the VND23,937 rate and the interest rate is fixed at 8.93% per annum. Interest Rate Swaps combined with FX forwards: US$45 million of principal payment in 2024 at FX rate of VND24,005; US$300 million has fixed interest rate of 6.48% per annum for 5 years with a 1-year FX at VND23,790 to mitigate both currency and interest risks. As a result, the recent appreciation of the dollar did not materially affect the Company’s earnings.
On April 20, Techcombank (“TCB”), Masan’s associated company, also approved the plan to pay a 15% cash dividend. Having 19.9% economic interest in TCB, Masan is expected to receive over VND1 trillion in cash in the next six months, allowing the Company to further deleverage.
BAIN CAPITAL PRIVATE EQUITY
Bain Capital Private Equity has partnered closely with management teams to provide the strategic resources that build great companies and help them thrive since its founding in 1984. Bain Capital Private Equity’s global team of more than 280 investment professionals creates value for its portfolio companies through its global platform and depth of expertise in key vertical industries including healthcare, consumer/retail, financial and business services, industrials, and technology, media and telecommunications. Bain Capital has 23 offices on four continents. Since its inception, the firm has made primary or add-on investments in more than 1,150 companies. In addition to private equity, Bain Capital invests across multiple asset classes, including credit, public equity, venture capital and real estate, managing approximately US$180 billion in total assets and leveraging the firm’s shared platform to capture opportunities in strategic areas of focus. For more information, please visit: https://www.baincapitalprivateequity.com/
[1] Proceeds net off transaction fees
