Real estate developer Nam Long Investment Corporation, has successfully issued its VND660-billion (US$29 million) fixed-rate bonds.

This bond issuance by Nam Long Corporation, which focuses in the affordable housing segment, was underwritten by GuarantCo. Ltd, an arm of the Private Infrastructure Development Group (PIDG).

PIDG is a multi-donor organisation comprising members of seven countries and World Bank, while GuarantCo is rated AA– by Fitch Ratings and A1 by Moody’s.

The landmark issuance was the first local currency bond issuance guaranteed by GuarantCo in Viet Nam and was privately placed to investors by Standard Chartered Bank Viet Nam Limited (SCB Viet Nam).

The VND660-billion fixed-rate bonds are priced at an interest rate of 6.5 per cent per annum and have a seven-year maturity term. They were issued on June 19, 2018, and will mature on June 19, 2025.

Nam Long is the latest corporate bond issuer to tap the Vietnamese dong bond market with an international guarantee structure in diversifying its sources of funds, contributing to significant progress in developing the local bond market.

According to Steven Chu, general director of Nam Long Corporation, affordable housing development is one of Nam Long’s key focuses. Through this bond issuance, Nam Long can attract the most prestigious investors and achieve a competitive long-term fixed interest rate, which will help the company meet capital needs for infrastructure development, he said.

“The bond was launched at a good time to anchor the market liquidity, and the issuance attracted a great set of highly reputable investors at a good price level. We are excited to be able to deliver a great outcome for Nam Long’s local currency bond issuance amidst a rising interest rate environment both internationally and domestically,” said Nirukt Sapru, CEO of SCB Viet Nam in a statement. — VNS