Masan completes $250-million equity raise from Bain Capital

April 23, 2024 | 17:37

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Masan Group Corporation (HOSE: MSN) has successfully completed a $250-million equity raise from Bain Capital, a world-leading private investment firm with approximately $180 billion of assets under management.

Masan completes $250-million equity raise from Bain Capital

Converted at VND25,356 per USD, the almost historically high USD/VND exchange rate, the investment results in a positive net cash impact of VND6.23 trillion, which will significantly strengthen the balance sheet of the company. Masan will continue to actively explore alternative options to deleverage and reduce interest expenses with a target net debts/earnings before interest, taxes, depreciation, and amortisation of <3.5x.

As the leading consumer-focused corporation in Vietnam, Masan is trusted among international financial institutions, which enabled the company to raise $1.5 billion in the past two years from global capital markets.

In the fourth quarter of 2023, the company successfully hedged 100 per cent long-term USD-debt exposure with favourable terms via cross currency swaps, and $950 million notional has been converted to VND at 23,937 with interest fixed at 8.93 per cent per annum.

Interest rate swaps combined with FX forwards include $45 million of principal payment in 2024 at a rate of 24,005; $300 million has a fixed interest rate of 6.48 per cent per annum for 5 years with a 1-year FX at 23,790 to mitigate both currency and interest risks. As a result, the recent appreciation of the USD did not materially affect the company's earnings.

On April 20, Techcombank (TCB), Masan's associated company, also approved a plan to pay a 15 per cent cash dividend. Having 19.9 per cent economic interest in TCB, Masan is expected to receive over VND1 trillion ($39.4 million) in cash in the next six months, allowing the company to further deleverage.

Masan expected to close $250 million investment from Bain Capital

On April 1, Masan Group Corporation announced that the State Securities Commission has acknowledged its receipt of the completed dossier for the private placement of convertible dividend preference shares related to the $250-million investments from Bain Capital (Bain), a world-leading private investment firm with approximately $180 billion of assets under management.

Bain Capital to inject another $50 million into Masan

On December 6, Masan Group Corporation announced that Bain Capital has agreed to increase its equity investment into Masan Group to $250 million from the previously announced $200 million.