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Banking & Finance

Masan subsidiary raises $100 million in bonds

Released at: 09:52, 10/12/2014

Masan subsidiary raises $100 million in bonds

Vietnam-based multinational insurance companies purchase ten-year bonds issued by Masan Consumer Holdings.

by Yen Thanh

MCH, a subsidiary of the Masan Group, has successfully raised VND2.1 trillion ($100 million) through the issuance of ten-year bonds with a yield of 8 per cent - one of the biggest companies to do so in Vietnam.

MCH will use the money to continue investing in the consumer goods segment. The company owns 77.4 per cent of Masan Consumer, which focuses on a range of food and beverage products, including soya sauce, fish sauce, chili sauce, instant noodles, instant coffee, instant cereal, and bottled beverages.

The bonds are guaranteed by the Credit Guarantee and Investment-held Facility (CGIF) and a trust fund of the Asian Development Bank (ADB). All of the bonds issued were booked for purchase in advance, with buyers mainly being global insurance companies doing business in Vietnam. Mr. Kiyoshi Nishimura, Executive Director of CGIF, said: “This is the first transaction by CGIF in Vietnam and marks an important milestone in our journey to support the development of bond markets in local currencies in ASEAN + 3 countries by assisting leading companies.”

Masan Group’s consumer goods in the first nine months of 2014 recorded revenue, EBITDA, and net profit of VND8.856 trillion ($421.714 million), VND1.822 trillion ($86.762 million) and VND2.249 trillion ($107.095 million), for growth of 18 per cent, 13.1 per cent, and 13.8 per cent compared to the same period of 2013.

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