Vincom Retail JSC, a unit of Vietnamese conglomerate Vingroup JSC, has received commitments for its US$240 million (RM1.01 billion) private credit loan, according to people familiar with the matter.
SeaTown Holdings International, Deutsche Bank AG, and HSBC Holdings Plc will provide around US$160 million for the offshore piece, said the people, who asked not to be identified discussing private matters.
Vietnamese banks and the local branches of several international lenders will fund the remaining US$80 million-equivalent in Vietnamese dong, they said, adding that proceeds raised are for expansion and refinancing purposes.
A Vingroup representative confirmed the fundraising, saying that it helps support Vincom Retail’s business operations. “The loan has been secured on favourable commercial terms, given the current market conditions,” the representative said, without elaborating on the details of the deal. Meanwhile, spokespeople for Deutsche Bank, HSBC and SeaTown declined to comment.
Vietnam’s private credit market has flourished since 2022, after Prime Minister Pham Minh Chinh ordered the finance ministry and central bank to review corporate bond issuances by property firms, as part of a sweeping probe of the market, Bloomberg News reported. This has led to a widespread funding crunch, as companies struggled to issue new notes under the new rules, or obtain loans.
Vingroup has tapped the private debt markets before. In 2023, its real estate arm Vinhomes JSC obtained a US$250 million private loan, Bloomberg News reported. The conglomerate is also seeking around US$300 million via private debt to purchase KKR & Co, Inc’s stake of about 38% in its education subsidiary Vinschool.
Source: The Edge Malaysia
