Goldman Sachs is zeroing in on Vietnam. Last week Goldman Sachs Investment Partner, a fund managed on behalf of Goldman Sachs Asset Management, hooked up with Ho Chi Minh City Infrastructure Investment Company.
Under the agreement, the infrastructure investment firm will issue convertible bonds worth $25 million to Goldman Sachs Investment Partners. The money could be used to finance the firm’s two investments, the $115 million Hanoi highway extension project and the $50 million Rach Chiec bridge.
This decision will be submitted to the company’s shareholder meeting at the end of this month for approval.
“This is the first time a Vietnamese infrastructure investment company has raised investment capital overseas, but not through official development aid or commercial loans,” said Nguyen Cuong, deputy director of Thien Viet Securities, financial advisor to the infrastructure investment firm.
“We are proud that Goldman Sachs Investment Partners has become our strategic investor,” said Infrastructure Investment Company general director Le Vu Hoang.
Also, the company is seeking shareholder approval for an additional $15 million investment from Goldman Sachs Investment Partners.
According to Goldman Sachs Asset Management, it will work with the company in areas including strategy development and subsequent overseas fund raising.
Previously, Goldman Sachs also signed a $30 million convertible loan agreement with one of Vietnam’s largest private sector companies Masan Group Corporation.
The dollar denominated convertible loan has a semi-annual coupon payment of 2 per cent of the first two years with a step up to 4 per cent in the third year and 6 per cent for the remaining term of the loan.
The convertible loan could be converted into primary shares of Masan at VND65,000 ($3,25) per share converted into dollars at the current exchange rate.