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Vietnamese property developer Vinhomes to issue int’l bonds to Asian Infrastructure Investment Bank
Vietnamese property developer Vinhomes is in the process of issuing international bonds at the Singapore Exchange, with the expected partner to purchase its international bonds being Asian Infrastructure Investment Bank (AIIB).
An artist’s impression of a project of Vietnamese property developer Vinhomes. Photo: T.Th.
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The State Bank of Vietnam is seeking feedback from the Ministry of Justice, the Ministry of Foreign Affairs, the Ministry of Finance, the Ministry of Public Security, the Ministry of National Defense, and the Ministry of Construction on whether they oppose AIIB’s investment in Vinhomes' bonds.
This investment falls within AIIB’s plan to invest in the private sector.
According to AIIB’s operational regulations, the bank will not provide financial support for any activities in a member country if that country objects.
Therefore, before investing in Vinhomes’ bonds, AIIB seeks a letter from the State Bank of Vietnam confirming that the government does not oppose its investment.
Vinhomes will use the funds raised from the international bond issuance for its projects, pay U.S. dollar debts, and invest in fixed assets for other projects.
Vinhomes, a subsidiary of Vietnam's largest private conglomerate Vingroup, was established in 2008 with initial capital of some VND43,500 billion (US$1.69 billion).
After 17 years of operation, Vinhomes’ market capitalization has risen to VND188,100 billion, equivalent to $7.3 billion.
According to the State Bank of Vietnam, AIIB's investment proposal aligns with the government’s policies on mobilizing private capital for social housing development, contributing to solving housing issues for low-income people.
Tuoi Tre News
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