Masan secures up to $650m syndicated loan, redeems $126.3m bonds

Friday, Mar 10, 2023 13:50

Masan Group Corporation on March 10 announced the completion of the roadshow for a US$650 million syndicated loan underwritten by BNP Paribas, Credit Suisse, HSBC, Standard Chartered Bank, and United Overseas Bank (lead arrangers and bookrunners).

Masan’s 2023 syndicated loan roadshow has attracted significant interest from nearly 200 attendees from lenders in Singapore and Taiwan. — Photo courtesy of Masan

This transaction, coupled with the over-subscribed $600 million 2022 syndicated loan, will potentially amount to $1.25 billion in financing raised over the past six months.

This is a vote of confidence in Masan’s strong business fundamentals and a validation of its credit profile. Management will continue to optimise the balance sheet, reduce interest expenses and deleverage via strategic corporate actions.

The mandated lead arrangers and bookrunners have committed $375 million and the 2023 syndicated loan roadshow attracted significant interest from nearly 200 attendees from interested lenders in Singapore and Taiwan, which enabled Masan to upsize the transaction to $650 million.

The loan is priced at 3.5 per cent over the US dollar secured overnight financing rate (SOFR), or approximately 8 per cent per annum.

With a five-year tenor, the 2023 syndicated loan will extend Masan’s debt maturity profile and strengthen its liquidity ratios.

In addition, Masan redeemed VND3 trillion ($126.3 million) worth of bonds issued in 2020 that matured on March 9, 2023.

The CrownX, Masan’s integrated consumer-retail platform, is capable of generating solid cash flows. — Photo courtesy of Masan

Prior to the drawdown of the 2023 US dollar syndicated loan transaction, Masan had nearly VND17.2 trillion in cash and cash equivalents (including investments), enabling it to settle all upcoming debt obligations and, more importantly, invest for future growth.

Masan’s 2023 financial forecast is for a base case consolidated net revenue of VND90-100 trillion ($3.8-4.2 billion), representing 18-31 per cent growth from 2022.

Core net profit after tax pre-minority interest (excluding one-off) is expected to be VND4-5 trillion ($169.4-212.1 million), representing growth of 4-30 per cent.

If macro conditions are tougher than expected and negative consumer sentiments persist, the management projects the top line to grow by 10-15 per cent. — VNS