Vingroup is issuing 3 rounds of almost 7,000 billions corporate bond to increase capitals for VinFast and Vinsmart, and has successful raised 1,515 billions in round 1.
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Vingroup announced a public offering of bonds with a plan to issue 69,750,000 bonds – equivalent to VND6,975 billion of bonds to the public in the first quarter in three times, the par value of the bond is 100,000 dong, with a term of 3 years. Bonds in all three phases are non-convertible, not accompanied by warrants, and are unsecured.
The bond interest rate is paid periodically every 3 months, in which the maximum first year interest rate is 9.7% and the next period is the reference interest rate (average 12-month average interest rate for personal savings) plus margin 3.7%.
Vingroup plans to use more than VND 5,100 billion to increase capital for VinFast and VND 1,860 billion to increase capital for Vinsmart. Minimum order for individual customers to participate in the issuance is 100 billion VND, while institutional customers’ is 500 billion VND.
According to VCSC, VinFast plans to launch VinBus and 4 new electric motorcycle models and 3 smart car models – including cars with conventional engines and electric cars, in which 2 smart electric cars will be commercialized on the global market in the year 2021-2022.
The company also shared that it is currently developing a level 3 self-driving car program, which is a key feature in future car models. With the upcoming models, the management board plans to take 30% of the total market share in the passenger car market in Vietnam, and attract more suppliers to VinFast Industrial Park to complete the plan to reach the EBITDA break-even point in the next 5 years.
In 2020, VinFast sold a total of 29,485 cars, including 18,016 Fadil cars, 6,013 Lux A2.0 cars and 5,456 Lux SA2.0 cars. VinFast Production and Trading Company Limited has its head office in Dinh Vu Economic Zone, Cat Hai, Hai Phong with actual contributed charter capital 31,115 billion, in which Vingroup holds 51.15%. By the end of the first 6 months of 2020, VinFast’s total assets reached VND 96,443 billion, revenue reached VND 4,689 billion and profit after tax is negative VND 6,655 billion.
For VinSmart whose head office is located in Lang Hoa Lac Hi-Tech Park, Hanoi, the actual charter capital is 5,000 billion VND and Vingroup holds 62.02%. At the end of the first 6 months of 2020, VinSmart’s total assets reached VND 9,006 billion, revenue reached VND 1,826 billion and profit after tax had a loss of VND 1,274 billion.