Vinpearl, a major hospitality-recreation developer and operator in Viet Nam, has successfully issued a US$425-million Exchangeable Sustainable Bond (ESB), exchangeable into shares of its parent company Vingroup.

This issuance is the world’s first ESB and registered a total subscribed demand of almost twice the base amount following book-building.

The bonds mature in 2026 and have a coupon of 3.25 per cent per annum.

The Joint Book-runners and Joint Lead Managers for the bonds include Credit Suisse, the Hongkong and Shanghai Banking Corporation (HSBC) and BNP Paribas.

Nguyen Viet Quang, Vice Chairman and Chief Executive Officer of Vingroup, said the oversubscription in Vinpearl’s ESB demonstrates investors’ positive reception to the exchangeable sustainable bonds that Vingroup and its member companies have pioneered.

“The transaction also affirms Vingroup and its members’ prestige and sustainable businesses, as well as Vietnamese corporates' position in the international capital market,” he affirmed.

For his part, Tim Evans, CEO of HSBC Viet Nam, said that Vingroup is one of the most successful stories coming out of Viet Nam. The conglomerate’s amazing growth has contributed to putting Viet Nam firmly on the world economic map, which in turn has helped build the Viet Nam brand with international investors.

It is therefore no surprise to see the group pioneer an innovative, world-first ESB, which HSBC was delighted to arrange, he added.

Previously, in April 2021, Vingroup also successfully issued the Vingroup Exchangeable Bond worth $500 million which was offered into shares of its real estate arm Vinhomes. — VNS