Vingroup offers to repurchase up to $300 million of 3% exchangeables

By Mary-Katherine Stinson

Lexington, Ky., Oct. 25 – Vietnam’s Vingroup JSC is offering to purchase up to $300 million of its $500 million 3% exchangeable bonds due 2026 (ISIN: XS2332809412), which are exchangeable into shares of Vinhomes JSC at an initial exchange price of VND 123,000 per share, according to a notice.

Under the bonds’ terms and conditions, the issuer or any of its subsidiaries may make open market repurchases of the bonds anytime at any price.

The repurchase price will be $196,000 per $200,000 principal amount of the existing bonds. In addition, accrued interest will be paid from and including the preceding interest date of Oct. 20.

The repurchase will be conducted concurrently with a proposed new issue of fixed-rate exchangeable bonds due 2028 and is expected to close three business days after the settlement of the new bonds. The repurchase is conditioned on the success of the new bond issue, market conditions, investor demand and other conditions.

The terms of the new bonds, including issue size, will be determined through a book building exercise.

Should the new bonds be consummated, the issuer currently intends to use the net proceeds for refinancing the group’s existing obligations, funding the group’s capital expenditures, for the group’s general corporate purposes and to fund the concurrent repurchase of the 3% bonds.

Assuming full exchange of the outstanding existing bonds at the current exchange price of VND 90,450 per share, the outstanding existing bonds are exchangeable into approximately 127,534,549 shares.

HSBC Ltd., Singapore Branch and UBS AG Singapore Branch were appointed on Oct. 4 as the joint dealer managers and joint lead managers for the repurchase offer and the new issue.

The Bank of New York Mellon, London Branch is the trustee.

Vingroup is a real estate, tourism, hospitality development and management company.

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