Hoan My Medical Corporation on Monday successfully issued VND2.33 trillion (US$99.7 million) in dual-tranche fixed rate bonds.
Hoan My is the leading and largest private hospital network in Viet Nam by number of hospitals and operating beds. — Photo nhadautu.vn
The issuance was placed by Standard Chartered Bank Viet Nam and guaranteed by Credit Guarantee and Investment Facility (CGIF), a trust fund of the Asian Development Bank rated AA internationally by S&P.
Hoan My is the leading and largest private hospital network in Viet Nam by number of hospitals and operating beds. With 14 hospitals and six clinics, Hoan My serves more than 3 million patients annually, providing affordable, high-quality healthcare to the people of Viet Nam.
SCB Viet Nam’s expertise in local currency bond origination in Viet Nam has enabled Hoan My to achieve its objective of a dual-tranche issuance, locking in a fixed-rate long-term funding at competitive yields. This is the fifth time that SCB Viet Nam has acted as the Bond Issuance Agent for a guaranteed dong-denominated corporate bond issue.
“We are delighted to partner with CGIF on the first bond issuance out of the healthcare industry in Viet Nam. This issuance enables us to tap the capital markets for fixed-rate long-term funding, which better suits the nature of our business. This will allow us to grow and invest in our healthcare services across Viet Nam and further our mission of helping more people to live healthier and more prosperous lives,” said Huynh Le Duc, Group Chief Executive Officer of Hoan My.
"The success of this first healthcare bond is a reflection that the VND local bond markets are ready and can play an important role in funding private healthcare businesses towards better accessibility, quality and affordable healthcare services for the Vietnamese people," said Kiyoshi Nishimura, Chief Executive Officer of CGIF.
The VND2.33 trillion dual-tranche fixed rate bonds were oversubscribed by a factor of 2.5 and are priced at an annual interest rate of 6.64 per cent for the five-year maturity term, and 6.74 per cent for the seven-year maturity term. — VNS