IFR Asia – May 05, 2018

COUNTRY REPORT VIETNAM

margin of 240bp over Libor and a five-year
average life.
HYOSUNG VINA CHEMICALS, Hyosung’s Vietnam-
incorporated wholly owned subsidiary, was
the borrower. The Seoul-listed parent was
the guarantor.
Funds were for construction of
polypropylene and liquefied petroleum
gas plants in Ba Ria-Vung Tau province
near Ho Chi Minh in south-eastern
Vietnam.
On January 3, Hyosung announced a plan
to split into five companies – a holding
company and four operating subsidiaries
(Hyosung T&C, Hyosung Heavy Industries,
Hyosung Advanced Materials and Hyosung
Chemical).

EQUITY CAPITAL MARKETS

› VINHOMES LAUNCHES IEO

High-end property developer VINHOMES has
launched an initial equity offering of up
to D31.8trn (US$1.40bn), with cornerstone
investors buying 74%–76% of the offer.
Around 267.2m–277.3m secondary
shares, or 10%–10.3% of the capital, are
being sold in a D110,500–D114,700 range,
according to a term-sheet.

If 267.2m shares are sold at the top

of the range the deal will total D30.6trn

and if all the shares are sold it will

total D31.8bn. Cornerstones will take

D23.4trn.

The transaction is Vietnam’s largest

equity offering, beating Vietnam

Technological and Commercial Joint

Stock Bank’s D21trn IPO earlier this

month.

Certain undisclosed minority individual

shareholders are selling the Vinhomes

shares.

The cornerstone investors include

Avanda Investment, Capital Research,

Dragon Capital, Ivy Investment, JF

Asset Management, Korea Investment

Management and Mirae Asset Global

Investment. The remaining cornerstone

investors are multi-strategy funds and other

investors.

On April 12, Singapore’s GIC agreed

to buy 189.8m Vinhomes shares for

US$853.3m from Vingroup and other

shareholders.

The total secondary proceeds from

the IEO and pre-IEO will be close to

USS$2.2bn.

There will be a 180-day lock-up on

the selling shareholders, as well as on

Vinhomes, Vingroup, which owns 69.7%

of Vinhomes, GIC (7.08%), Vincommerce

(4.12%) and other individual shareholders

who together own 3.19%.

Books close on May 7 and the shares

start trading on the Ho Chi Minh Stock

Exchange on May 17.

Citigroup, Credit Suisse, Deutsche Bank

and Morgan Stanley are the joint global

coordinators and bookrunners with HSBC

and Maybank.

Vinhomes, a Vingroup subsidiary,

has a 48% market share of the high-end

property developments in the last three

years in Hanoi and Ho Chi Minh City. In

2017 Vinhomes reported residential sales

revenue of US$1.98bn and gross profit of

US$766m.

Vietnam global equity and equity-related

1/1/18 – 30/4/18

Amount

Name Issues US$(m) %

1 Deutsche 2 374.1 33.3

2* Morgan Stanley 1 307.9 27.4

2* VCSC 1 307.9 27.4

4* Credit Suisse 1 66.2 5.9

4* Citigroup 1 66.2 5.9

Total 2 1,122.2

Source: Thomson Reuters

S034334/5-16

CONTRIBUTE CONTENT.

MULTIPLY YOUR REACH.

Contribute new issues and join hundreds of syndication

desks, law fi rms and fi nance companies worldwide.

Learn more at fi nancial.tr.com/contribute

or email [email protected]