Masan Group to mobilise $434.78 million through bonds

Masan Group will issue the bonds in four stages in 2020

Masan Group will offer the securities in four stages in the first half of 2020 at coupons fixed in the first year of issuance. Also, Masan may repurchase the bonds after 12 months from the date of issuance.

The Ho Chi Minh City-based group will spend VND5 trillion ($217.39 million) to increase its holdings in Masan Vision Co., Ltd., a 99 per cent owned subsidiary of Masan.

In addition, the group plans to use the remains for loans to Masan Consumer Holdings (VND3 trillion – $130.43 million) and MNS Meat Ha Nam Co., Ltd. (VND1 trillion – $43.48 million).

The rest of the VND1 trillion ($43.48 million) will be used to pay off the loans of Masan subsidiary Nui Phao Mining.

The interest rate applied for the first, second, and fourth stages are 9.3 per cent in the first year of issuance.

The interest rate applicable for each subsequent six-month period is floating, equal to the sum of 2.5 per cent per annum and the average of the individual 12-month savings deposit interest rates issued by Vietinbank (Hanoi branch), Vietcombank (Transaction Office branch), Agribank (Transaction Office branch), and BIDV (Transaction Office branch).

The third stage will have a stable interest rate of 10 per cent in the first year, and interest for each subsequent six-month periods will be equal to the sum of 3.2 per cent per year and the average of the individual 12-month savings deposit of the above banks.

The plans of issuing bonds were announced recently after Masan took over VinMart, VinMart+, and VinEco from Vingroup, aiming to become the leading retail-consumer group in Vietnam.

Masan has also listed its subsidiary, Masan MEATLife, on the UPCoM platform with the ambition to make this business the largest manufacturer and distributor of packaged meat in Vietnam by 2022.