Mobile World issues bonds with ADB backing

November 22, 2017 | 11:19

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Mobile World Group has debuted in the Vietnamese bond market with its first issuance of fixed-rate bonds guaranteed by a trust fund of the Asian Development Bank (ADB).

Vietnam's number-one retailer Mobile World Group has tapped into the bond market for M&A capital

The leading consumer electronics retailer issued VND1.135 trillion ($49.9 million) worth of bonds on November 17, in collaboration with Credit Guarantee and Investment Facility (CGIF), a multilateral facility established by ASEAN countries, China, Japan, Korea, and ADB.

Priced at an annual interest rate of 6.55 per cent, the bond has a five-year maturity term, ending on November 27, 2022.

With this offer, Mobile World has joined the handful of non-bank Vietnamese firms that utilise the growing bond market to mobilise capital. Long-term fixed rates allow companies to make long-term investments, all while avoiding risks associated with refinancing, as well as interest and foreign exchange rate volatility.

“Our transaction demonstrates the positive development of the Vietnamese bond market, with participation from reputable and well-recognised investors at an attractive fixed interest rate. The issuance will enable us to finance our M&A activities,” said Nguyen Duc Tai, chairman of Mobile World.

The landmark transaction also represents the 3^rd VND-denominated corporate bond issuance guaranteed by CGIF. Standard Chartered Bank Vietnam acted as the placement agent.

To date, CGIF has successfully issued guarantees to bonds in five ASEAN currencies: Indonesian Rupiah, Singaporean Dollars, Thai Baht, Vietnamese Dong, and Philippines Peso.