HCMC – Vinpearl JSC last week successfully issued a US$425 million Exchangeable Sustainable Bond, which can be converted into shares of Vietnam’s major conglomerate Vingroup JSC.
This issuance is the world’s first exchangeable sustainable bond and registered a total subscribed demand of almost twice the base amount following book-building. The bonds mature in 2026 and carry a coupon of 3.25% per annum, according to the Joint Book-runners and Joint Lead Managers for the bonds, namely Credit Suisse, the Hongkong and Shanghai Banking Corporation (HSBC) and BNP Paribas.
As the Sole Sustainability Structuring Bank, HSBC supported Vingroup in developing its inaugural Sustainable Finance Framework, which includes six green and two social project categories across Vingroup’s business segments. The potential project categories include clean transportation, green buildings, sustainable water and wastewater management, pollution prevention and control, energy efficiency, renewable energy and access to essential services – healthcare and affordable housing.
Sustainalytics, a leading independent company that rates the sustainability of listed companies, commented that the framework can make a positive impact on the environment and the society.
Nguyen Viet Quang, vice chairman and CEO of Vingroup, said, “The oversubscription in Vinpearl’s exchangeable sustainable bonds demonstrates investors’ positive reception to the exchangeable sustainable bonds that Vingroup and its member companies have pioneered. The transaction also affirms the prestige and sustainable businesses of Vingroup and its members, as well as the position of Vietnamese corporates in the international capital market.”
Vinpearl is a wholly-owned subsidiary of Vingroup and a leading hospitality – recreation developer and operator in Vietnam, with 35 hotels and resorts, three theme parks and two amusement parks, two semi-wildlife animal sanctuaries, four golf courses in 16 major cities and popular tourist destinations in Vietnam.
Rehan Anwer, Co-Head of Investment Banking & Capital Markets for Southeast Asia & Frontier Markets of Credit Suisse, said, “Credit Suisse congratulates Vingroup, the largest private economic group in Vietnam, on achieving the milestone of issuing the world’s first exchangeable sustainable bond. Credit Suisse provides green financial solutions to our customers, and we also execute our commitment to sustainability in all of our banking activities.”
Tim Evans, CEO of HSBC Vietnam, said, “Vingroup is one of the most successful stories coming out of Vietnam. Their amazing growth has contributed to putting Vietnam firmly on the world economic map, which in turn has helped build the ‘Vietnam’ brand with international investors. It is therefore no surprise to see it pioneer an innovative, world-first Exchangeable Sustainable Bond, which HSBC was delighted to arrange.”
In April this year, Vingroup successfully issued a US$500 million Vingroup Exchangeable Bond offering into shares of Vinhomes.