Vinpearl Joint Stock Company has successfully issued a US$425 million Exchangeable Sustainable Bond (ESB), convertible into new shares of Vingroup Joint Stock Company.

Vinpearl Nha Trang. Photo: Vinpearl

According to the Joint Book-runners and Joint Lead Managers for the bonds, namely Credit Suisse, the HSBC, and BNP Paribas, this issuance is the world’s first exchangeable sustainable bond and registered a total subscribed demand of almost twice the base amount following book-building.

The bonds mature in 2026 and have a coupon of 3.25% per annum.

As Sole Sustainability Structuring Bank, HSBC supported Vingroup in developing its inaugural Sustainable Finance Framework, which includes six green and two social project categories across Vingroup's business segments. Potential project categories include clean transportation, green buildings, sustainable water, and wastewater management, pollution prevention and control, energy efficiency, renewable energy, access to essential services – healthcare and affordable housing.

Sustainalytics, a leading independent company that rates the sustainability of listed companies, commented that the Framework has a positive impact on the environment and society.

“The oversubscription in Vinpearl’s exchangeable sustainable bonds demonstrates investors’ positive reception to the exchangeable sustainable bonds that Vingroup and its member companies have pioneered,” said Nguyen Viet Quang, Vice Chairman cum Chief Executive Officer of Vingroup

“The transaction also affirms Vingroup and its members’ prestige and sustainable businesses, as well as Vietnamese corporates' position in the international capital market,” Quang added.

Vinpearl is a wholly-owned subsidiary of Vingroup and a leading hospitality - recreation developer and operator in Vietnam, with 35 hotels and resorts, three theme parks and two amusement parks, two semi-wildlife animal sanctuaries, four golf courses in 16 major cities, and popular tourist destinations in Vietnam.

Rehan Anwer, Co-Head of Investment Banking & Capital Markets for Southeast Asia & Frontier Markets of Credit Suisse, said: “Credit Suisse congratulates Vingroup, the largest private economic group in Vietnam, on achieving the milestone of issuing the world's first exchangeable sustainable bond.”

“Vingroup is one of the most successful stories coming out of Vietnam. Their amazing growth has contributed to putting Vietnam firmly on the world economic map, which in turn has helped build the ‘Vietnam’ brand with international investors. It is, therefore, no surprise to see it pioneer an innovative, world-first Exchangeable Sustainable Bond, which HSBC was delighted to arrange,” said Tim Evans, CEO of HSBC Vietnam.

In April 2021, Vingroup also successfully issued a $500 million Vingroup Exchangeable Bond offering into shares of Vinhomes.