Citi closes bond issue for coal monopoly

Citi Vietnam and Vietnam National Coal Mineral Industries Group (Vinacomin) Wednesday closed a VND1.5 trillion (US$84.3 million) local bond issue to finance Vinacomin’s general capital expenditure, the bank said.

The benchmark transaction was oversubscribed and finally priced at the tight end of the pricing guidance, Citi Vietnam said in a statement. The bank was the sole book runner.

Vinacomin CEO Tran Xuan Hoa said the money would enable his group to “diversify funding sources to meet increasing local demand for energy, and to maximize economic return by capitalizing on strong market interest among local investors.”

Vinacomin is the largest coal producer in Vietnam, having 29 open-pit mines and 20 underground mines with a total capacity of 47-50 million tons.

It is the world’s largest exporter of anthracite coal, accounting for over 90 percent of global sales.

thanhnien

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