Business

Masan Group draws down $600 mln from the international lenders

Masan Group has announced the successful full disbursement of its $600 million syndicated loan, an underwritten transaction which was oversubscribed by 37 international lenders.

Published

6 months ago

November 30, 2022

TienphongNews

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The Transaction was arranged by BNP Paribas, Credit Suisse, HSBC, and Standard Chartered Bank. The $600 million transaction is the largest ever 5-year offshore syndicated loan in Vietnam’s private corporate sector, Masan said in a statement.

The loan is priced at 2.9% over the U.S Dollar Secured Overnight Financing Rate, or approximately 6.7% per annum, with a margin over the reference rate improving by 35 basis points compared to the $200 million syndicated loan completed in 2020.

This improvement is considerable given that the recent transaction is for a 5-year loan versus a the 3-year tenor of 2020 loan, which was completed during a lower interest rate environment.

While less expensive, the increase in U.S. Dollar borrowing has introduced greater foreign exchange risk. As per internal policy, the Company will actively monitor and assess the right time for entering into hedging transactions to mitigate market risks while maintaining optimal cost of capital.

Since the establishment of The CrownX (TCX) at the end of 2019, Masan’s integrated consumer-retail platform that consolidates WinCommerce and Masan Consumer Holding, the Company has been able to materially improve TCX’ cash flow generation.

The CrownX’s EBITDA in 2022 is expected to grow by 3x versus 2019 (assuming full year consolidation of both WinCommerce and Masan Consumer Holding) with EBITDA margin improving to 13.4% from 5.5% during the same period, mainly driven by the turnaround of the retail business under Masan’s stewardship. WCM’s EBITDA margin is expected to improve by approximately 11% in 2022 compared to 2019.

Stronger business performance and expansion of retail network profitably have been recognized by other debt providers and international partners.

The recent issuance of VND1,700 billion bonds with tenor 5 years in November 2022, subscribed by well-known multinational investors managing high-AUM bond funds in Vietnam, and

VND2,500 billion in other domestic bonds issued in 2022. The tenor of all of the bonds issued in 2022 are 5 years, longer than the typical 3-year tenor of similar corporate bonds in the market, helping to lengthen the company’s debt schedule.

The Company maintains a sustainable leverage ratio and liquidity position given its ability to attract both international and local investors.

The new debts will not significantly affect the leverage ratio of the company while increasing the liquidity significantly thanks to higher duration and improved operating performance.

Up to November 2022, the company has not only fully repaid all of 2022 debt services of VND6,915 billion but also early repaid VND6,660 billion of debt maturing in 2023.

Source: https://e.nhipcaudautu.vn/companies/masan-group-draws-down-600-mln-from-the-international-lenders-3349334/

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Retailers improve quality to gain competitive advantage

Published

42 mins ago

June 7, 2023

TienphongNews

The presence of foreign-invested enterprises in Vietnam’s retail sector has increased competition among businesses, jointly regulating supply and demand in the domestic market.

According to trade experts, not only Thailand but also many other foreign retail businesses and domestic ones have expanded their business in the Vietnamese market.

As a result, the competitiveness of Vietnam’s retail market and local businesses has improved.

Over the years, Vietnam has issued a fairly comprehensive system of policies on attracting and managing foreign investment capital as well as developing orientations for the domestic retail market.

To create favourable conditions for retail businesses, experts said that besides attracting foreign investment, it is also important to build Vietnamese retail channels by Vietnamese people.

Vietnamese retail businesses should both compete and cooperate with foreign entities to learn experience and advanced retail technology. It is necessary to promote the link between domestic production and distribution system, and create a strong association to Vietnamese enterprises./.

Source: https://en.vietnamplus.vn/retailers-improve-quality-to-gain-competitive-advantage/253767.vnp

Business

Owners of condotels, officetels get title deeds

Published

3 hours ago

June 7, 2023

TienphongNews

Buyers of condotels, officetels and resort villas can have ownership certificates from May 20 under a new decree guiding the implementation of the Land Law.

On April 3, 2023, the Government issued Decree No.10 on amending and supplementing several decrees guiding the implementation of the Land Law from May 20.

The ownership term of the condotel depends on the purpose of land use following current regulations but not exceeding 50 years of the ownership term for land allocated or leased by the State for commercial or service use.

Buyers may only own land and apartments during the remaining land use period, not for long-term use as residential land.

According to experts, the Government’s decree will remove legal bottlenecks for investors and buyers of condotels, officetels and resort villas.

Experts said that if legal problems in the condotel, officetels and resort villa market are resolved, it can restore nearly 239 frozen projects nationwide, with a total value of about 30 billion USD./.

Source: https://en.vietnamplus.vn/owners-of-condotels-officetels-get-title-deeds/253607.vnp

Business

Vietnam invests over 316 million USD abroad in five months

Published

4 hours ago

June 7, 2023

TienphongNews

Vietnam invested nearly 316.4 million USD abroad in the first five months of this year, equivalent to 93.5% of the figure recorded in the same period last year, according to the Foreign Investment Agency under the Ministry of Planning and Investment.

Vietnam invests over 316 million USD abroad in five months hinh anh 1

Illustrative image (Source: VNA)

Hanoi – Vietnam invested nearly 316.4 million USD abroad in the first five months of this year, equivalent to 93.5% of the figure recorded in the same period last year, according to the Foreign Investment Agency under the Ministry of Planning and Investment.

Of the total, 142.7 million USD was poured into 47 new projects, or 48.6% of the figure in the same period in 2022 while 173.7 million was added to 16 underway ones, a year-on-year increase of 3.9 times.

Vietnamese investors abroad invested in 13 sectors, especially retail and wholesale, information and communications, finance, banking, agro-forestry-fisheries.

In the January-May period, Vietnamese investments landed in 20 countries and territories, led by Canada with one new and one expanded project worth over 150.2 million USD. It was followed by Singapore, Laos, and Cuba.

The agency said that as of May 20, Vietnam had operated 1,648 valid projects abroad with combined investment of nearly 22.1 billion USD, including 141 by State-owned enterprises worth 11.67 billion USD, accounting for 52.8% of the country’s total.

Vietnamese investment abroad is mostly in mining (31.5%) and agro-forestry-fisheries (15.6%).

Leading destinations for Vietnamese investors are Laos (24.4%), Cambodia (13.3%), and Venezuela (8.3%)./.

Source: https://en.vietnamplus.vn/vietnam-invests-over-316-million-usd-abroad-in-five-months/253762.vnp