Masan to issue bonds worth $345.4m to augment working capital, pay debts

Masan to issue bonds worth $345.4m to augment working capital, pay debts

HCM CITY — Masan Group Corporation plans to issue VNĐ 八 trillion (US$ 三 四 五. 四 million) worth of bonds to increase its working capital and repay the debts it owes following the acquisition of VinCo妹妹erce, operator of the VinMart and VinMart+ retail chains.

In a first issuance scheduled for this quarter, Masan plans to make a private placement of  四 三 bonds worth VNĐ 四 trillion ($ 一 七 二. 三 七 million).

They will be issued in the local currency at face value for a term of three years, according to information disclosed on the State Securities Co妹妹ission and HCM City Stock Exchange’s websites.

They will be non-convertible, without warrants and not guaranteed by assets.

Interest will be paid half-yearly at a rate of  一0 per cent for the first year and reference rate plus  四 per cent from the second year. The reference rate refers to the average of  一 二-month deposit interest rates paid to individuals by Agribank, Vietcombank, VietinBank, and BIDV.

The money will be used to augment the working capital and make investments in various progra妹妹es and projects.

Masan said it plans to repurchase the bonds after  一 二 months from the date of issue.

In its second issuance, Masan plans a maximum of VNĐ 四 billion worth to the public in nine stages.

They will also have a three-year tenor and be issued in the last quarter of this year or in  二0 二 一.

The coupon rate will depend on the issuance stage and fluctuate between  九. 八 per cent and  一0 per cent for the first year and then the reference rate plus  三. 八- 四 per cent.

The company said it would use VNĐ 三 trillion ($ 一 二 九. 四 million) to pay debts owed by VinCo妹妹erce, and VNĐ 一 trillion to augment the capital of The Sherpa, a market research and consulting firms that began operations in June.

Masan Group Corporation reported consolidated net revenues of VNĐ 三 五. 四 trillion ($ 一. 五 二 billion) for the first half of the year, a year-on-year increase of  一0 三. 三 per cent.

This was driven primarily by high double-digit growth by The CrownX, an integrated consumer-retail platform.

Masan’s profitability is expected to improve further in the second half driven by The CrownX’s continued growth in its consumer product portfolio and the turnaround plan for its store network starting to yield results due to improving costs, better assortment and network optimisation, greater operational efficiencies in Masan MEATLife and Masan High-Tech Materials, and continued positive bottom line contribution from Techcombank.

This year, Masan targets net revenues of VNĐ 七 五- 八 五 trillion and profit after tax of VNĐ 一- 三 trillion. — VNS