Masan Group draws down first tranche of its $650 million syndicated loan

March 30, 2023 | 14:46
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Masan Group has successfully drawn down the first tranche of its $650 million syndicated loan, despite the volatile global banking market.

The Masan Group Corporation announced the successful disbursement of $375 million – the underwritten tranche of its $650 million syndicated loan signed in February – in Ho Chi Minh City on March 30.

The company aims to fully utilise the 2023 syndicated loan via a greenshoe option of $275 million later in the year. The transaction was arranged and underwritten by BNP Paribas, Credit Suisse, HSBC, Standard Chartered Bank, and United Overseas Bank.

Stable cash flow from many business activities of Masan
Stable cash flows from Masan's many business activities. Source: Masan

Despite recent volatility in the global banking market, Masan was able to fully draw down the underwritten portion of the 2023 syndicated loan, ensuring a healthy financial profile. The loan is priced at 3.5 per cent over the US Dollar Secured Overnight Financing Rate, or approximately 8.0 per cent per annum.

With a 5-year tenor, the 2023 syndicated loan will extend Masan’s debt maturity profile and strengthen its liquidity ratios. As interest rates decline and the capital market stabilises, management will continue to optimise the company's balance sheet, reduce interest expenses, and deleverage via strategic corporate actions.

In a challenging macro environment, the ability to generate stable cash flows from manufacturing and retailing staple consumer products and a proven track record of accessing multiple capital markets will allow the company to win market share and invest in future growth.

With its cash-flow position, Masan is well positioned to continue investing in innovation while expanding the consumer-retail platform and maintaining a healthy balance sheet.

Masan Group believes in doing well by doing good. Its mission is to provide better products and services to the 100 million people of Vietnam, so they can pay less for their daily essentials. Masan aims to achieve this by driving productivity with technological innovations, trusted brands, and focusing on fewer but bigger opportunities that impact the most lives.

The group’s member companies and associates are industry leaders in fast-moving consumer goods, branded meat, modern retail, food and beverages, financial services, telecommunications, and value-add chemical processing – together representing the segments of Vietnam’s economy that are experiencing the most transformational growth.

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By Tuan Khanh

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