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Wednesday, December 1, 2021

Van Phu – Invest raises US$30 million from Oman-backed joint venture

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Van Phu – Invest Investment Joint Stock Company (HoSE: VPI) has raised VND690 billion (US$30.1 million) via the issuance of three-year convertible bonds, without warrants, for VIAC (No.1) Limited Partnership, a subsidiary of Vietnam – Oman Investment (VOI).

Ho Chi Minh City Securities Corporation served as the consulting firm for the transaction.

22.5 million VPI shares were used as collateral in the transaction. These bonds can be converted into VPI shares after maturity.

A representative from the real estate developer Van Phu – Invest revealed that the mobilized capital will finance the firm’s two key projects within the next three years, including VND453 billion (US$19.7 million) for the Phong Phu Riverside housing project (Binh Chanh District, HCMC) and VND100 billion (US$4.4 million) for the construction of public roads in HCMC through a build – transfer (BT) venture. The remaining capital would be used to supplement its business activities.

The Omani subsidiary noted that it places high expectations on the Vietnamese real estate market and the economy at large in the future. In addition, its representative asserted that it strongly believes in the capacity and reputation of the bond issuer.

Van Phu – Invest saw its revenues drop by 30 percent year-on-year to VND639.9 billion (US$28 million) in the first nine months of 2021 while its net income increased by 11 percent to VND106.9 billion (US$4.66 million).

Meanwhile, its current ratio and quick ratio were 1.37 and 0.84 respectively for the last quarter. The firm aims to achieve VND3.1 trillion (US$135.3 million) in full – year revenue and VND341 billion (US$14.88 million) in earnings before taxes.

Founded in 2009, the Vietnam – Oman Investment JSC is a joint venture between the Oman Investment Authority (OIA) and the State Capital Investment Corporation of Vietnam (SCIC).

The joint venture acts as a channel for the investment capital flow from the Sultanate of Oman into Vietnam. It has so far disbursed nearly US$300 million after 12 years of operating in Vietnam, with a focus on fields with competitive advantages such as infrastructure, power, water treatment, education, health care, hi-tech agriculture, renewable energy, and real estate, thus making significant contributions to the sustainable development of the Southeast Asian country.

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