Vingroup to launch int’l bond sale

Vingroup Joint Stock Company, the new name of Vincom Joint Stock Company, on Wednesday organized the first shareholders meeting since Vinpearl was merged into Vingroup.

At the meeting, Vingroup reported that it had completed the $185 million international convertible bond sale and had listed on the Singapore Exchange early this month. Foreign investors may order more bonds worth as much as $115 million by July 10 this year, taking the total value of the bond issuance to $300 million.

The issuer expects over 69.8 million shares, or a 22.9 per cent stake in Vingroup, would be needed for the bond conversion. In addition, the group has to issue and list common shares on the Singapore Exchange.

The shareholders meeting approved a proposal to restrict the foreign ownership ratio at 22.9 per cent of the total shares issued by Vingroup.

It is expected that Vingroup will issue about 151 million shares at the end of the second quarter. With an additional chartered capital of over VND1.51 trillion, Vingroup plans to invest VND584 billion in Eden A project, VND427 billion in Vincom Village, and add VND500 billion to working capital.

Vingroup last year earned more than VND2.3 trillion in revenue, dropping VND1.55 trillion against 2010. Office and retail leasing brought in VND942 billion, surging 32 per cent over the preceding year, while property transfers fetched some VND1.37 trillion, dipping 56 per cent.

After-tax profit amounted to VND1.07 trillion, a decline of VND1.35 trillion against 2010.

This year Vingroup aims for net revenue of over VND12.3 trillion, pre-tax profit of VND4.27 trillion and after-tax profit of VND3.05 trillion.

A scheme for distribution of last year’s profit and advance dividend payment in the first quarter this year also got the nod of shareholders. Particularly, Vingroup uses shares to pay dividends at a 1000:275 ratio, in which the ratio for dividend payment from accumulated profit is 1000:124 and that for advance dividend payment is 1000:151.