CGIF backs SCommerce's $22.3m bond to advance Vietnam's logistics sector

According to the announcement on May 29, the bond was issued at a coupon rate of 6.70 per cent per annum. This transaction marks Credit Guarantee and Investment Facility's (CGIF) first guaranteed bond in Vietnam’s logistics sector and represents SCommerce’s maiden bond issuance, a significant milestone in the company’s financing strategy. The bond’s seven-year tenor provides SCommerce with stable, long-term funding that better aligns with its project cash flows while preserving liquidity for working capital needs.

The proceeds of the bond will finance the development of a state-of-the-art sorting centre in the Tan Kim Industrial Park, Tay Ninh Province in Vietnam's southern region. Designed to serve both the surging demand of Vietnam's e-commerce sector and the increasingly complex requirements of business-to-business (B2B) logistics clients, the facility will serve as the southern anchor of SCommerce's national logistics network, significantly expanding throughput capacity and enabling more reliable, scalable supply chain solutions for enterprise partners across the region.

Maybank Investment Bank acted as Sole Arranger for the transaction.

Noriko Nasu, CEO of CGIF stated, “We are pleased to support SCommerce’s inaugural bond issuance, marking CGIF’s first guaranteed bond in Vietnam’s logistics sector. This transaction enables SCommerce, a first-time issuer, to access long-term local currency financing with a seven-year tenor aligned with the cash flow profile of its sorting centre project investment. The issuance underscores CGIF’s continued commitment to fostering private sector development in Vietnam, broadening sectoral diversity in the local currency bond market, and enabling first-time issuers to secure long-term funding that supports their strategic growth objectives.”

Luong Duy Hoai, CEO of SCommerce stated, "We are honoured to partner with CGIF and Maybank on this transaction. CGIF’s guarantee reflects the high financial, operational and environmental, social, and governance standards to which SCommerce is committed as an issuer. With funding from this issuance, the Tan Kim sorting centre will be completed by the end of this year. It will substantially expand our capacity to serve e-commerce merchant partners while enabling us to scale our B2B supply chain offerings under the Giao Hang Nang brand."

Kim Thien Quang, CEO of Maybank Investment Bank said, “We are pleased to have acted as Sole Arranger and Sole Placement Agent for SCommerce Investment Corporation’s debut bond issuance, a landmark transaction supported by CGIF’s guarantee. This milestone enables long-term, fixed rate VND financing from global life insurance investors for Vietnam’s logistics sector and highlights the continued development of the country’s capital markets. Leveraging our deep local expertise and strong regional network, we remain committed to connecting clients with financing solutions that drive economic growth for the country.”

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