Singapore sovereign wealth fund GIC will invest about $1.3 billion in leading Vietnamese property developer Vingroup and related entities for its real estate arm ahead of its market debut, which is slated for the second quarter of this year.
|Vinhomes' Imperia project in Haiphong |
GIC will purchase an ordinary shares and extend a debt-like instrument to the subsidiary of Vingroup namely Vinhomes, subject to the satisfaction of mandatory regulatory and other conditions. The combined value of the investment and debt instrument is approximately VND29.5 trillion, or $1.3 billion.
GIC is a sovereign wealth fund of the Singaporean government. It invests in the unlisted public market and private equity with a focus on healthcare, operating infrastructure, as well as financial and business services, among others.
GIC is one of the largest investment funds in Vietnam. It currently holds a 5 per cent stake in Masan Group, 5 per cent in VietJet, 0.7 per cent in Vinamilk, and 3.5 per cent in FPT. Its total holdings reach a total value of VND15 trillion ($658.6 million).
Vinhomes currently has a charter capital of VND26.37 trillion ($1.16 billion) and submitted dossiers to list 2.6 billion shares on the Ho Chi Minh City Stock Exchange in early April.
Meanwhile, Vingroup has the largest market capitalisation on the Vietnamese stock exchange with approximately $15 billion. Another subsidiary of Vingroup, Vincom Retail, listed on the Ho Chi Minh City Stock Exchange in November 2017 with the market capitalisation of $3.4 billion.