Mobile World successfully issued its inaugural VND1.135 trillion fixed rate bonds, guaranteed by Credit Guarantee and Investment Facility
Hanoi, 17 November 2017 - Mobile World Investment Corporation ('Mobile World'), the leading retail group of diversified product categories including mobile phones and consumer electronics, has today successfully issued its inaugural VND1.135 Trillion fixed rate bonds, guaranteed by Credit Guarantee and Investment Facility ('CGIF'), a trust fund of Asian Development Bank that is rated AA internationally by S&P.
Mobile World joins a select few non-bank corporate bond issuers in tapping the Vietnamese Dong bond market, contributing significant progress in developing the local bond market as a means of corporate funding. Collaborating with CGIF for the issuance, Mobile World continues to demonstrate its leading position in the industry with the backing of a strong counterparty in its bond issue.
'We are excited to collaborate with CGIF on our first bond issue. This transaction demonstrates the positive development of the local bond market, with participation from reputable and well-recognised investors at an attractive fixed interest rate. This enables us to finance our M&A activities,' said Mr Nguyen Duc Tai, Chairman of Mobile World.
In a market where there is a lack of corporate issuers and long term bonds, this bond issuance represents significant progress in further deepening the Vietnamese Dong bond market.
The issuance represents the 3rd VND-denominated corporate bond issue guaranteed by CGIF and was placed by Standard Chartered Bank (Vietnam) Limited ('SCB Vietnam'), acting as the Placement Agent. The transaction was closed on an accelerated execution timeline, leveraging on SCB Vietnam's prior experience in executing such a transaction.
'We are pleased to support Mobile World on this landmark transaction. With Standard Chartered's local insights, regional footprint and international expertise, we are able to match Mobile World's corporate funding requirements with CGIF's guarantee capabilities, to structure a deal that meets Mobile World's objectives and CGIF's mandate to support and develop the local bond market, as well as to bring attractive investment opportunities to local investors,' said Mr. Nirukt Sapru, Chief Executive Officer of SCB Vietnam.
'The success of this bond issue marks another major achievement for CGIF in our efforts to connect creditworthy corporates in Vietnam like Mobile World with a new source of debt financing. The 5-year bullet maturity bonds at fixed rates will also match Mobile World's strategic growth ambitions. We are proud to have played a significant role in successfully bringing Mobile World's first ever bond issue to the market and look forward to it being a repeat issuer in the VND bond market in the future', said Mr Kiyoshi Nishimura, Chief Executive Officer, of CGIF.
With active issuances of guarantees in the local currency bond markets in the region, including this transaction, CGIF has realised a key aspiration of its stakeholders, to help companies raise long term fixed rate funding in matching currencies. This access allows companies to make long term investments when risks associated with refinancing as well as interest and foreign exchange rate volatility dissipate.
Developing this capability in the Vietnamese Dong bond market has been CGIF's key priority to lead the way for more long term investments including those needed for infrastructure in Vietnam. This transaction marks CGIF's 19th guarantee issued. To date, CGIF has successfully issued guarantees to bonds in 5 ASEAN currencies - Indonesian Rupiah, Singapore Dollars, Thai Baht, Vietnamese Dong and Philippines Peso.
The VND1.135 trillion fixed rate bonds are priced at an interest rate of 6.55% p.a. and has a 5-year maturity term. It is issued on 17 November 2017 and will mature on 17 November 2022.